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Luke Marion appointed Managing Director of the Oxford Bus Company

12 January 2023

Luke Marion appointed Managing Director of the Oxford Bus Company

The Go-Ahead Group has appointed Luke Marion as Managing Director of the Oxford Bus Company.

Previously Finance Director for ten years, Luke has been Interim Managing Director since April 2022, replacing Phil Southall who has moved to a role at The Go-Ahead Group’s head office in London.

A chartered accountant by training, Luke qualified at Ernst & Young, and he worked at Reckitt Benckiser before moving into transport. In addition to his role at Go-Ahead, he is a director of Oxfordshire’s Low Carbon Hub.

The Oxford Bus Company comprises Thames Travel, Carousel Buses and City Sightseeing Oxford as well as the Oxford Bus Company network. Based in Cowley, the business employs 600 people and is wholly owned by The Go-Ahead Group.

Martin Dean, Go-Ahead’s Managing Director, Regional Bus, said: “I’m delighted that Luke will be taking on the role of MD permanently in Oxford. He’s done a great job steering the commercial aspects of the business and he’s the ideal person to take the company forward.

“I’d like to thank Phil Southall for his outstanding leadership in Oxford, and to wish him well in his group role.”

Go-Ahead recognised as leading apprenticeship provider

23 November 2022

Go-Ahead recognised as leading apprenticeship provider

  • Recycling at Go-Ahead London increased from 5.5% to 33% within a year
  • Up to 60 tonnes of recyclable waste per month, the equivalent weight of five double decker buses
  • Project Go Eco, in conjunction with waste contractor Biffa, is to be rolled out to all Go-Ahead’s UK bus operating companies
  • The transport company is on track to achieve its Group target of 60% of recycled rate by 2025

Go-Ahead’s largest bus operating company has achieved a 28% increase in recycling since a new initiative, ‘Project Go Eco’ was introduced to separate recyclable materials from all general waste.

With over 2,300 buses across 17 depots, Go Ahead London sites accumulate up to 60 tonnes of recyclable material per month – including paper, cardboard, and other recyclables left behind by passengers – equivalent to the weight of five double decker buses. Due to its success, the project in conjunction with waste contractor Biffa is to be rolled out to all Go-Ahead’s bus companies.

The project involved collaborating with colleagues to change behaviour towards waste management and working with Biffa to provide segregation bins for recyclable materials to increase recycling rates. In its first year, the project was trialled at Go-Ahead London, Go South Coast and Brighton & Hove Buses and Metrobus, helping the Group towards its target of 60% recycled rate by 2025.

Go-Ahead’s Climate Change Strategy outlines the company’s commitment to waste reduction by implementing new initiatives.

The Group’s Climate Change Strategy also aims to achieve:

  • A Zero-emission bus fleet in the UK by 2035
  • A 25% water usage reduction by 2025
  • 17% carbon monoxide emission (CO) reductions by 2025

Mark Anderson, Group Customer and Commercial Director, said: “Keeping buses clean and tidy is a huge undertaking at a company the size of The Go-Ahead Group. Every day, passengers leave behind thousands of newspapers, magazines, and bits of packaging, many of which can be recycled.

“We’re actively looking for ways to improve sustainability and we’re proud that we’ve been able to take a significant step forward in increasing the amount of waste we can recycle, supporting the circular economy. This not only helps the planet – it saves us money on waste disposal, too.”

 

Go-Ahead hosts bus driver recruitment open days for Ukrainian refugees

07 November 2022

Go-Ahead hosts bus driver recruitment open days for Ukrainian refugees

A Go-Ahead Group bus company is working in partnership with the Department for Work and Pensions to help Ukrainian refugees to become bus drivers. A change in government legislation has resulted in Ukrainian refugees receiving immediate settlement status and the opportunity to work in the UK straight away.

The UK has suffered a shortage of drivers across the entire transport industry and the bus sector is no exception – the Confederation of Passenger Transport estimates that 9% of bus driver roles are vacant across the country.

In Sussex, Go-Ahead’s Brighton & Hove and Metrobus have been campaigning non-stop for new drivers to join their team since the country came out of lockdown to support passenger demand. Even though the company has seen an increase in candidates coming forward and new drivers appointed, it still isn’t enough.

Ukrainian bus drivers can exchange their bus driving licence for a UK licence under a current standard EU agreement. Previously bus drivers from countries other than the UK had to wait a year before they could apply for jobs at Brighton & Hove and Metrobus. However, with a new company policy and a special training programme in place the company can support Ukrainian refugees back into work.

On Thursday 10 November 2022, Brighton & Hove and Metrobus will invite Ukrainian refugees to its recruitment open day. Those who attend have been assessed by the Department for Work and Pensions on the basis of having a driver’s licence and a good understanding of English written and verbal communication skills that are essential for the positions offered.

Anita Pain Employer Advisor for Brighton and Hove Jobcentre, said:” It’s terrific how businesses have come together to support the Ukrainian community. We are delighted to have been a part of this innovative and fast paced approach to fill vacancies in our city”.

At the open day the Ukrainian refugees will find out what jobs are available at the company including driving, engineering and customer services. They will learn more about the training processes involved and career progression.

Ed Wills, Managing Director of Brighton & Hove and Metrobus said: “We provide a first class bus service for our community. We want to help local people live their lives to the full whether that’s driving them to work, school or to meet up with friends and family. As a company we also have the ability to offer jobs to people from the Ukraine who are here to start a new and more peaceful life. I look forward to having more recruitment events like this in the future.”

Bus driver salaries in Brighton have increased by more than 10% this year. Drivers can now expect to earn a basic salary of £31,000 plus overtime after training.

David Cutts to become Managing Director of Go-Ahead London

22 September 2022

David Cutts to become Managing Director of Go-Ahead London

  • David Cutts, presently Operations Director, to become Managing Director in January
  • After 16 years in the role, John Trayner steps back from day-to-day operations
  • Go-Ahead London operates a quarter of London’s buses on behalf of Transport for London

The Go-Ahead Group announces that David Cutts is to become Managing Director of Go-Ahead London in the new year, replacing John Trayner who is retiring from day-to-day leadership of the capital’s biggest bus company.

David has been Operations Director of Go-Ahead London since 2006. He began his career as a London Buses management trainee prior to the bus network’s privatisation and he was Operations Manager of London Central’s Peckham depot when Go-Ahead bought the business in 1994. He has held senior positions for The Go-Ahead Group in Manchester and Singapore as well as in London.

He will take on the top job at Go-Ahead London on January 1st 2023, overseeing 7,750 colleagues, 2,300 buses and 17 depots, accounting for a quarter of London’s bus network.

John Trayner, who has been Go-Ahead London’s Managing Director for 16 years, will remain on The Go-Ahead Group’s Executive Committee with responsibility for strategic oversight of the group’s bus businesses in London, Ireland, Singapore and Sweden.

“”
David Cutts is an exceptional leader with huge experience of running successful bus networks. He takes on leadership of Go-Ahead London at an exciting time as the business pioneers zero-emission technology and works closely with Transport for London to encourage more Londoners onto public transport.

John Trayner has made a huge contribution to keeping Londoners moving over the last two decades. Under his tenure, Go-Ahead London has doubled in size and introduced electric buses and depots. He has been a champion of Londoners from diverse backgrounds through the company’s award-winning bus driver recruitment, training and apprenticeship programs.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Virtual bus stops: Go-Ahead to launch on-demand bus service in Buckinghamshire

21 September 2022

Virtual bus stops: Go-Ahead to launch on-demand bus service in Buckinghamshire

  • PickMeUp service in High Wycombe to be operated by Carousel Buses, with support from Buckinghamshire Council
  • Customers will be able to summon a bus using an app
  • Initiative aims to get people out of their cars and onto shared minibuses

The Go-Ahead Group is to operate a demand responsive bus service from Tuesday 27 September in the town of High Wycombe, allowing customers to request a pick-up at a ‘virtual bus stop’.

The group’s Carousel Buses brand is teaming up with Buckinghamshire Council to run the ride-sharing service which is aimed at encouraging shoppers, commuters, students and leisure travellers to leave their cars at home.

A recruitment campaign has begun to hire minibus drivers and customer service controllers for the PickMeUp service, which will begin operating later this year.

PickMeUp operates on the concept of ‘virtual bus stops’, with services picking up and dropping off customers near where they want to start and end their journeys, without being constrained by physical infrastructure.

Funded by the local authority with support from the Government’s Rural Mobility Fund, the service will be run by Carousel, which operates around 45 buses in High Wycombe and the wider Buckinghamshire area. Carousel also serves locations including Slough in Berkshire, Hemel Hempstead in Hertfordshire and Uxbridge.

A previous version of PickMeUp was run by Go-Ahead’s Oxford Bus Company between 2018 and 2020, as part of a two-year pilot. It was the UK’s largest demand responsive bus service; however, it lacked any local authority funding to operate beyond the two-year period.

Luke Marion, Interim Managing Director, Carousel Buses, said: “The idea of PickMeUp is to provide a new way to get people around swiftly, efficiently and on demand. I hope this will further encourage people to leave their cars at home, help reduce pollution and further improve connectivity in High Wycombe.”

Martin Dean, Go-Ahead’s Managing Director, UK Regional Bus, said: “We’re always looking for new ways to get people onto buses. This is an innovative idea which uses technology to bring buses to people when and where they want them. We’re delighted to be working on the initiative with Buckinghamshire Council.”

Go-Ahead supports Catch the Bus Month by encouraging more people to adopt bus travel

01 September 2022

Go-Ahead supports Catch the Bus Month by encouraging more people to adopt bus travel

  • Go-Ahead supports Bus Users UK, Catch the Bus Month, a charity that campaigns for inclusive and accessible transport
  • Regional bus companies undertake community initiatives to mark Catch the Bus Month
  • Go-Ahead sees significant growth in passenger numbers post COVID-19

Go-Ahead is showing its support for the Bus Users UK’s, ‘Catch the Bus Month’ campaign throughout September. The campaign aims to encourage people to take the bus and promotes the benefits such as accessibility, affordability, and sustainability.

The ‘Catch the Bus Month’ campaign is in line with Go-Ahead’s targets set out in ‘The Next Billion Journey’s’ business strategy to attract more people to bus travel post Covid-19 and the Group’s commitment for more sustainable travel.

During Catch the Bus Month 2022, Go-Ahead bus companies are specifically highlighting the benefits of bus travel.

  • In East Anglia, in person events in Norwich, Sudbury, Clacton and Colchester will promote car free days with local MPs in attendance to show their support. Go East Anglia, Konectbus, will also offer free travel across Norwich on 25 September (coinciding with World Car Free Day) to encourage people to travel by bus.
  • Brighton and Hove Buses will be promoting its digital campaign ‘My bus is driving change’ to showcase all the different people who catch the bus including messaging around accessibility, zero emission benefits and targeting loneliness.
  • Meanwhile, Go South West, Plymouth City Bus and Go Cornwall, is encouraging bus travel amongst families and older people by offering them concessions.  People at the Devon Business Show will receive a free bus ticket to encourage them to try the bus.

Go-Ahead has seen a significant recovery in passenger numbers post COVID-19. Go North West is the first in The Go-Ahead Group’s UK-wide network to hit pre-pandemic levels of passenger recovery. Across the UK, bus usage is at about 85% of pre-pandemic levels.

Mark Anderson, Go-Ahead’s Customer and Commercial Director, said: “Catch the Bus Month is a great campaign to be involved in. We’ve been working hard to bring passengers back to our buses – including data analysis to understand new travel patterns and to tailor routes, schedules, and ticketing to match passenger needs, plus marketing initiatives to rebuild confidence in public transport.

“The Group is working closely with clients and local authorities to stimulate further modal shift from private cars to public transport, supporting the achievement of local and national climate change targets.”

Buses also reduce social isolation and improve health and well being. Claire Walters, Chief Executive of Bus Users UK the charity behind Catch the Bus Month said: “Buses make a huge contribution to all our lives socially, economically, and environmentally. They are also a lifeline for communities providing access to education, work, healthcare, shops, and leisure. We want to see more people get on board this September to protect these vital services for future generations.”

Go-Ahead creates pioneering toolkit to support Dyslexic bus drivers

25 August 2022

Go-Ahead creates pioneering toolkit to support Dyslexic bus drivers

  • First of its kind toolkit created by Go South West
  • Initiative is part of an inclusion strategy to support neurodiverse colleagues
  • Extra time, materials and resources available to those diagnosed with Dyslexia

A Go-Ahead operating company, Go South West, has launched a Dyslexia toolkit to support colleagues who have been officially diagnosed with the condition.

Dyslexia is recognised as a learning difficulty which can affect skills such reading, spelling, and writing, often making it difficult for bus drivers to read bus timetables and to complete paperwork at the end of the shift. The toolkit offers colleagues:

  • Coloured overlays to help those who struggle with reading text on white paper
  • An online to-do list and task management App that can be downloaded onto colleagues work phones
  • Paper To-Do lists for those who find them preferable to electronic communications
  • The ability to record meetings if colleagues struggle with notetaking
  • Additional time for paperwork at the end of shifts

About 10 per cent of the population is believed to have some form Dyslexia, although it varies from mild to severe. It usually runs in families and is a life-long condition.

Dyslexic people process information differently. They sometimes have difficulty processing and remembering information they see and hear, and the condition can affect organisational skills. However, many Dyslexic people show particular aptitude in other areas – including reasoning and in visual and creative fields.

Joe Savage, Bus Driver, for Go South West said: “As someone who is diagnosed as Dyslexic, and who understands the struggles it can entail, I was keen to get involved in this project. The toolkit has been designed with our Dyslexic colleagues in mind, but it is important to understand the resources are available for all our colleagues. Simple adjustments can make a big difference to our workforce.”

Richard Stevens, Go South West, Managing Director said: “I welcome the new toolkit, it’s very useful for our colleagues. Sometimes it can be easy to overlook the struggles people with Dyslexia face in their day to day. At Go-Ahead we want to ensure everyone is included and supported to do their jobs with ease. Thank you to the Go South West team for coming together and rolling out the new toolkit for colleagues.”

Steve O’Brien CEO for Dyslexia Foundation said: “It is a great idea to address the needs of staff with Dyslexia, the toolkit created is a good starting point from Go-Ahead Group and it will be interesting to see how this develops over the coming months. We encourage and support initiatives like this, Dyslexia Foundation promotes a positive attitude towards dyslexia and offers an environment in which to enable support and to talk about dyslexia.”

Diversity and Inclusion is at the forefront of Go-Ahead’s ‘The Next Billion Journey’s’ business strategy and the Group has previously been named the ’most admired company’ in the transport sector for innovation, commitment to diversity and ability to attract top talent.

Vote for Newcastle! Go-Ahead backs bid to host Britain’s railway HQ

28 July 2022

Vote for Newcastle! Go-Ahead backs bid to host Britain’s railway HQ

The Go-Ahead Group plc is backing its home town by supporting Newcastle’s bid to host the headquarters of Great British Railways (GBR).

With a skilled workforce, a rich heritage in transport and great connectivity, Newcastle is the perfect location for the new body which will oversee Britain’s 20,000 miles of railway.

Go-Ahead, which employs more than 2,000 people locally and has its registered office in Newcastle city centre, is proud to support Newcastle City Council’s initiative to bring GB Railways to the north-east.

A competition to select the location for GB Railways’ head office was announced by the Secretary of State for Transport in 2021. Out of 42 expressions of interest, Newcastle was named in June as one of six shortlisted cities to be put to a public vote.

“”
As an international transport company originating from the north-east, Go-Ahead fully backs the Newcastle’s bid to host the headquarters of Great British Railways.

Newcastle is a vibrant city packed with innovation, excitement and ingenuity. It’s a great place to live, work and do business, and it’s full of transport talent and experience. We urge everybody to vote for Newcastle in this competition – and we look forward to welcoming Great British Railways to the city

Carolyn Ferguson, Go-Ahead’s Group Company Secretary who is based out of Go-Ahead’s office in Grey Street, Newcastle

Click here to watch our “back Newcastle” campaign video

GB Railways will be a single, accountable body responsible for Britain’s railways, as set out in the Williams-Shapps Plan for Rail published in May 2021. The Government wants this new organisation to be based outside London.

Newcastle City Council has proposed two sites for the headquarters – the Stephenson Quarter, where Robert Stephenson’s original locomotive works were established in 1823, or Forth Good Yards – location of the original passenger station when the railways came to Newcastle in 1839.

 

“”
I would like to thank Go Ahead Group for their support with the Newcastle bid. We’re a region that knows the importance of collaboration and this is yet another great example. Our partners and stakeholders are passionate about the future of our city, its growth, and the opportunities investments like this can bring.

This investment creates a visible and meaningful commitment to Levelling Up and would provide a further boost to our regional economy, delivering new jobs and opportunities for those who live and work here. It will also be a catalyst for further investment and opportunity, creating a new chapter and legacy in our railway history. The pride and ambition from partners like Go-Ahead Group, who are so committed to ensuring our city is full of opportunity, is invaluable.

Sam Cassidy, Inward Investment Manager, Newcastle Gateshead Initiative

The Newcastle city region is home to 2.6 million people and 70,000 businesses. Nine million people pass through Newcastle central station annually, and the city is well connected, with 80 direct destinations from Newcastle airport. The average journey to work for people in Newcastle is 7.8 miles – the lowest in England.

One of the largest transport companies based in the region, Go-Ahead was founded in 1987 through a buy-out of a Gateshead bus company. The Group now operates bus and rail in six countries – including Govia Thameslink Railway in the UK, which runs Thameslink, Southern, Great Northern and Gatwick Express services. In the Newcastle area, Go-Ahead runs buses under the Go North East brand.

You can back the bid and vote for Newcastle to become the home of Great British Railways, voting closes on 15 August: http://www.gbrtt.co.uk/hq-competition-public-vote

The final decision will be announced later this year by the Secretary of State for Transport.

Ministerial launch for money-saving bus ticket scheme in Cornwall

26 July 2022

Ministerial launch for money-saving bus ticket scheme in Cornwall

The Go-Ahead Group was pleased to welcome Baroness Vere of Norbiton, the Minister for Buses, to launch a county-wide ‘Tap & Cap’ scheme today that will save money for bus customers in Cornwall.

The scheme implements a cap on daily and weekly fares. Passengers tap their card when they get on the bus, and tap again when they alight, and are charged the correct fare automatically. Regardless of the number of journeys taken in a day customers will not pay more than £5 and no more than £20 for a week.

Go-Ahead’s Go Cornwall Bus is the largest bus operator in the county in terms of passenger numbers. The company is working closely with other bus companies, and with Transport for Cornwall, to deliver an integrated ticketing and travel network across the county.

The ‘Tap & Cap’ scheme builds on support that is already in place for customers across Cornwall and builds on Go-Ahead’s investment in rural transport services in the county, which totals £25 million since 2020.

From April 2022, ticket prices on buses operating in Cornwall were cut by up to 40% under a Government-backed pilot scheme, “Make Big Savings By Bus”. There is also an “any ticket, any bus” programme which made tickets interchangeable between Cornwall’s bus companies.

These initiatives are consistent with goals under the Government’s National Bus Strategy to encourage partnership working between operators and local authorities, and to promote the social, economic, and environmental benefits of bus usage.

Baroness Vere, Parliamentary Under Secretary of State at the Department for Transport, said: “At a time when many people are feeling the pinch, every potential saving matters. That is why we have provided more than £23 million to help look at ways to make local bus services more affordable.

“The brilliant “Tap & Cap” pilot will not only help reduce travel costs for people across Cornwall but will also help encourage greater use of more sustainable ways of transport, while helping create a truly integrated local bus network.”

Richard Stevens, Managing Director, Go South West, said: “As the county’s largest bus operator, operating over 100 routes and carrying 90,000 passengers per week – we’re proud to be part of the latest initiative to save customers money and encourage people to switch from their cars to the bus – increasing the use of public transport. Together, as part of Transport for Cornwall we must continue to invest in change to make sure customers get the service they deserve.

Trading update for the year ended 2nd July 2022

11 July 2022

Trading update for the year ended 2nd July 2022

Go-Ahead today provides a trading update for the year ended 2 July 2022 (FY22).

“”
Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before COVID-19. We are encouraged to see so many people using buses and trains and we expect a busy summer ahead, particularly in tourist areas.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Our markets

Regional Bus

In our Regional Bus division, we have continued to see a steady recovery in passenger demand, with commercial volumes across the business now over 85 per cent of pre-pandemic levels. In some areas, we have seen particularly encouraging volumes in recent weeks, with pre-pandemic volumes being recorded on some days. These trends give us confidence in the continuation of passenger recovery in the coming months.

The Board now expects Regional Bus to deliver operating profit before exceptional items ahead of that of the prior two years.

London & International Bus

Our London & International Bus division will benefit from performance that is ahead of plan in London and Singapore, including better than anticipated Quality Incentive Contract (QICs) payments in London In Sweden, Flexbuss, which we acquired in April 2022, is trading positively and in line with our expectations.

The Board now expects the division to deliver operating profit before exceptional items at least in line with pre-pandemic underlying profitability levels (2019: £51.2m).

UK Rail

Following the successful commencement of GTR’s new National Rail Contract on 1 April 2022, the Board expects UK Rail to deliver operating profit before exceptional items within the range set out in the Group’s interim results of £25m – £30m.

International Rail

In Germany, we continue to progress our improvement plans in Baden-Württemberg, although financial penalties relating to operational performance have been slightly higher than anticipated in the period. Following discussions with our client in Baden-Württemberg, we are pleased to have reached a memorandum of understanding which will result in a modest improvement to the financial performance of the contract over its life. Further negotiations remain underway.

The first of two contracts in Bavaria started on 12 December 2021 and the second will commence in December 2022. Following the successful mobilisation of the first contract, performance has been in line with our expectations.

Mobilisation of the second contract in Bavaria remains underway ahead of its commencement in December 2022. As previously indicated, there are inherent uncertainties and risks associated with the mobilisation of this contract and in estimating the impact of key success factors including driver recruitment. As part of our year end procedures, we will be carefully reviewing the projections for the second contract in Bavaria and assessing the requirement for any potential further provision.

As announced on 28 June 2022, a new agreement was reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract. Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.

The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029). The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth. As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.

The Board expects International Rail to deliver an operating loss before exceptional items within the range set out in the Group’s interim results of £15m – £20m.

Balance sheet and liquidity

The Group has a strong balance sheet and maintains good liquidity. The Board continues to expect FY22 adjusted net debt/EBITDA to be at the lower end of the 1.5 to 2.5 times range, significantly below the 3.5 times bank covenant.

Overall performance

Overall, the Group expects to report a good performance for the year ended 2 July 2022.

Certain statements in this announcement constitute profit estimates for the purposes of Rule 28 of the City Code on Takeovers and Mergers. Further details on the basis of preparation of the profit estimates and certain confirmations from the directors of Go-Ahead in relation to the profit estimates can be found in the scheme document published by Go-Ahead dated 11 July 2022 which is available at https://www.go-ahead.com/investors/offer.