Transport group Go-Ahead in line to meet expectations

Jun 18 2009 By Andrew Mernin

BUS and train operator Go-Ahead said it was performing as expected and would meet internal hopes for full-year profit as passenger numbers continue to rise despite the recession. The Newcastle company said it remains confident that it will deliver a full-year to June 27 operating performance in line with our expectations.

Before the trading update analysts were forecasting underlying pretax profit of about £111m, according to Reuters Estimates, down from £131m the previous year.

The stock was up 14 pence, or 1% at 1350 pence in early trading, valuing the business at £577m.

"Good execution in tough conditions is the hallmark of Go-Ahead," said analysts at Citi in a research note.

The group, which operates over 3,400 buses and runs the Southern, Southeastern and London Midland rail franchises through 65 percent-owned joint venture Govia, said it had continued to grow like-for-like revenue in bus and rail.