Go-Ahead group shares up as bus performance remains strong

Transport operator Go-Ahead Group (LON:GOG) disclosed strong third quarter results on Thursday, with shares rising 5pc on confirmation that trading remains in line with expectations.

Regional revenue in its bus division rose around 1.5 percent in the period between 1 January 2017 to 19 April 2017, while passenger journeys remained unchanged. In a statement, the company said their regional bus business had continued to deliver increasing revenue in line with expectations and, although subdued, “passenger volumes are outperforming the wider industry”.

“Mileage operated and revenue growth in our London bus operations are in line with our expectations. We are pleased to have secured 95 percent of expected revenue for 2017/18, through the normal bidding cycle”, the company said.

The company’s rail division, which operates the Southeastern, London Midland and GTR franchises,¬†experienced a more mixed performance during the period. Slowing passenger growth on Southeastern services was offset by a “strong performance” from¬†London Midland.

“Our full year expectations for both bus and rail divisions are unchanged from the update given at the half year results on 28 February 2017. The group remains in a strong financial position, with good cash generation and a robust balance sheet,” Go-Ahead confirmed.

Go-Ahead is one of the UK’s largest bus operators with a fleet of around 5,200 buses. Their operations are focused on high density commuter markets with a strong presence in London, where it holds around 24 per cent market share.

Shares in Go-Ahead are currently up 5.55 percent at 1825.00 (0917GMT).