Upbeat Go-Ahead on track
IMPROVED rail services and heavy road congestion are persuading more passengers to let the train take the strain, transport firm Go-Ahead said yesterday.
It reported strong growth in its rail and bus businesses as it shrugged off worries over rising fuel costs. Its upbeat third-quarter report helped shares rebound after losing about one-third over the past two months.
It has hedged half this year’s fuel needs at 29p a litre compared with the current price of 39p. For next year, it has hedged one-third at 36p.
Finance director Nick Swift said rail passenger revenues grew at just over 13 per cent on the previous year. Go-Ahead is also taking over running the Gatwick Express service in June.
He added: “The continued strength of demand for rail is a product of improvements in punctuality, frequency, service quality and investment, and high road congestion.”
Go-Ahead’s bus operations also achieved double-digit revenue growth and “anticipate a significant improvement in operating profit and margin for the full year against last”. The shares rose 207p to 1657p.