Go Ahead suspends divi; says govt to reveal train franchise changes
Go-Ahead Group
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16:34 07/10/22
Rail and bus operator Go-Ahead Group said the UK's Department for Transport would on Monday announce temporary changes to rail franchise agreements across the UK to support the sector during the coronaviruis crisis and added that it would be suspending its dividend.
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The company, which has a 65% stake in the Govia Thameslink Railway added that it was in discussion on a potential direct award contract for the Southeastern franchise and expected a decision to be made by the end of the month.
In regional bus, significantly reduced services had been introduced in response to declines in passenger numbers, with reductions in the cost base being made where possible.
“Discussions with government and local authority continue regarding financial and contractual support. The group retains a strong balance sheet with good liquidity under its existing facilities and maintains a positive dialogue with its lenders,” the company said in a statement.
“The board has decided to suspend the proposed interim dividend of 30.17p per share, reflecting the current priority of prudent cash management.”
"In the meantime, we aim to support the UK's efforts in tackling the crisis by providing unutilised buses to transport NHS workers, supporting supermarkets with food deliveries and delivering essential goods to cut off and self-isolating communities."