Transport group Go-Ahead is hoping to capitalise on opportunities from re-nationalised bus services as Northern mayors take control of their public transport systems.
The Newcastle-based firm – which was bought in 2022 by an overseas consortium in a £669m deal – has recently celebrated the first anniversary of running the Bee Network for Greater Manchester mayor Andy Burnham, saying it had improved punctuality and overall performance in the area, as well as introducing additional buses and night services.
And in its first set of accounts since the takeover by a Spanish/Australian consortium, Go-Ahead has said that it sees bus franchising contracts in places like Manchester, Liverpool and Yorkshire as being an opportunity for growth. That came after bus operations contributed 42% of the company’s revenues, up from 36% a year earlier.
Go-Ahead added that it would be looking to consolidate its leading position in core markets, specifically the Ƶ, Scandinavia, Ireland and Singapore, including through acquisitions, as well as looking for opportunities in the light rail market.
The accounts say: “The overall strategy of the Go-Ahead Group is one geared towards growth. Further developments in the business are likely to include:
“Consolidating the Go-Ahead Group’s leading position in its existing core markets (Ƶ, Nordics, Ireland, Singapore) through accretive bolt-on acquisitions and local tenders; with a focus on operating efficiencies, synergies, network expansion and asset ownership.
“Increasing contracted, availability-based revenues and WACT (weighted average contract term) by capitalising on bus franchising opportunities in the North (Manchester, Liverpool, West Yorkshire).
“Expanding multi-modal offering to enhance the Go-Ahead Group’s stakeholder relationships and strategic partnerships, becoming the mass transit provider of Governments (with a particular focus on new light rail and rapid transport opportunities).”
The accounts cover an 18-month period to the end of 2023, with revenues coming in at £4.6bn and group operating profit standing at £119.2m. Though revenues were up on the previous 12-month accounting period, profits fell.
Go-Ahead Group recently bought four coach companies in Yorkshire and Teesside to enhance its presence in the North, as well as acquiring a tour bus company in Sussex. The company also made headlines in the run-up to the Government’s recent international investment summit by announcing a £500m investment in electric buses that won praise from Transport Secretary Louise Haigh.
The company was formed in 1987 and has grown from being a small bus operator in the North East to become an international provider of passenger transport, particularly train and bus services. The firm was bought by a partnership between Australia’s Kinetic Group and Spain’s Globalvia two years ago.
