Go-Ahead rail expects hits

By PETER RANSCOMBE AND GRAEME EVANS
Published on 22/06/2012 00:00

Go-Ahead, the transport group behind nearly 30 per cent of all UK rail journeys, said it expects economic conditions to hit profits at its train arm next year.

The firm, which runs the commuter lines Southern, Southeastern and London Midland through its 65 per cent owned Govia subsidiary, is also facing £6 million of bid costs during a busy period for the re-letting of franchises.

It is concentrating efforts on growing its bus division through acquisitions and contract wins.

Referring to Southern, Go-Ahead said the economic climate was weaker than it expected when it bid for the franchise in 2009.

It said that while the performance of its bus business is likely to remain strong, rail will be impacted by “slower than assumed economic growth rates”.