Go-Ahead to restart dividends

Go-Ahead said it would restart dividends as the bus and train operator set out targets for improved revenue and profit.

The company said it would pay a dividend of at least 50p a share for the year to 2 July and that its policy would be to pay out between 50% and 75% of underlying earnings per share.

Go-Ahead set a medium-term target of about £4bn for annual revenue - an increase of 30% - and an increase in annual operating profit to about £150m.

Chief Executive Christian Schreyer said transport in the UK was at a "tipping point" after the strains of the Covid-19 crisis and that mass transit was becoming more important because of factors such as the climate emergency.

"Today we've set ambitious but deliverable targets," Schreyer said. "It has been a challenging two years for public transport but there is an exciting future ahead for Go-Ahead."

Go-Ahead did not pay a dividend in the year to July 2021. Shares of Go-Ahead jumped 9% in early trading and were up 3.7% to 873.23p at 08:14 BST.