Bus and rail operator Go-Ahead Group has raised its financial expectations for the full year as it gears up for a rise in passengers when the economy reopens.
The Newcastle-based transport company, which runs the Southeastern and Govia Thameslink Railway as well as bus services across the 海角视频, reported a “resilient” half-year performance in the six months ended January 2, against a challenging backdrop.
Group adjusted operating profit was £56.1m, compared to the comparable period’s £60m, while revenues rose 3% to £2.07bn.
Regional bus operating profit dropped from £19.1m to £12.3m, reflecting the impact of the pandemic and two lockdowns on passenger revenue, which were mitigated by the Government’s support for maintaining bus services.
Its London and international bus operating profit was £37.3m, up from £26.2m - a stronger year-on-year performance largely due to a short-term, non-cash benefit from the timing of Quality Incentive Contract (QIC) income.
Meanwhile rail operating profit more than halved from £14.7m to £6.5m, with material cost savings offsetting reduction in profit from its current rail contracts.
In his report, CEO David Brown said the group’s business model has proved resilient throughout the crisis, with 90% of group revenues being supported by contracts which are not exposed to changes in passenger demand. The remaining 10% continues to be supported by Government packages.
He said the firm offers additional support to colleagues at greater risk from Covid-19, supporting shielding where required.
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As well as using lateral flow testing for colleagues - and self-isolating where needed - regular swab testing of buses, trains and facilities has been carried out, both by Go-Ahead and independent organisations, and minimal presence of the virus has been detected.
He said: “As we continue to deal with the challenges of the pandemic, my thoughts are with those impacted by Covid-19, particularly the families and friends of colleagues who have lost their lives.
“I would like to thank all my colleagues for their hard work in ensuring people can travel safely to work, hospitals, schools and make other essential journeys. They have all played a key role keeping buses and trains running throughout this crisis.
“We are pleased to be supporting the vaccination roll-out in our communities by operating dedicated shuttle services to vaccination centres, transforming buses into mobile centres, and providing free parking in our train station car parks for people travelling to appointments.
“As the economy opens throughout the spring, we expect to see passengers return, with evidence of pent up demand for leisure journeys, including high levels of staycations. Prior to the second lockdown, our regional bus services were up to 60% of normal passenger journeys, and while demand patterns across the day may be different, we anticipate a desire to return to city centres for work and leisure.
“Public transport plays a vital role in the economic recovery by providing access to jobs and education. It is also integral to the Government’s Net Zero ambitions, to improving air quality, and to improving public health, especially in combination with active travel. We expect to see this reflected in the forthcoming National Bus Strategy.
“Private operators are uniquely placed to deliver the passenger growth, innovation and efficiency that customers, communities and the Government want to see as we emerge from the pandemic. The agility and collaboration demonstrated throughout the past 12 months is further evidence of the vital role we play in our communities.”
Shares rose almost 8% in early trading to £13.85.