GO-AHEAD PROFITS HIT BY RAIL TROUBLES
DECLINING RAIL profitability has hit financial performance at Go-Ahead, according to the company’s results for the year to 1 July.
Go-Ahead currently operates three franchises through Govia, the joint venture with Keolis in which it has a 65% stake, although it is to lose the London Midland franchise to Abellio in December. Go-Ahead as a whole saw a 4.9% decline in profit attributable to shareholders, with rail operating profit falling from £71.4 million to £59.9 million.
The Govia Thameslink Railway franchise has had a significant effect on financial performance, in no small part due to industrial relations issues, with passenger numbers and revenue both in decline. Agreement was reached in July with the Department for Transport on contractual discussions related to the impact of industrial action, although there remains a range of uncertainty reflecting ongoing discussions over other contractual variations, including those related to rolling stock cascades and timetable specifications. Go-Ahead now expects margins over the life of the GTR contract to be between 0.75% and 1.5%.
London Midland was the company’s best performing franchise. Go-Ahead notes its disappoi…
