Go-Ahead rail ‘to start paying’

Transport group Go-Ahead yesterday said its rail division will contribute to Treasury coffers from April after seeing growth in its three commuter franchises.

Its London Midland service has been eligible for revenue support from the Department for Transport (DfT) since November but Go-Ahead said this has not been required after passenger revenues on the commuter line jumped 13 per cent in the six months to 31 December.

The Newcastle-based group, whose joint venture with Keolis runs the Southeastern and Southern franchises, said its rail division will be a net contributor to the DfT from April. Across the rail arm, profits were up 25 per cent to £16.5 million when £9m of one-off contracts are excluded from last year’s figure.