Go-Ahead ups outlook as passengers return to buses
Go-Ahead Group
1,546.00p
16:34 07/10/22
Go-Ahead said passengers were returning to its buses as lockdown restrictions eased and the company upgraded its financial outlook for the current year.
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More people are travelling on UK regional buses than at any time in the pandemic as they travel for shopping, leisure and to meet friends and family, Go-Ahead said. Passenger volumes are between 65 and 70% of normal levels on most days compared with 20% in March and some regions have peaks of more than 80%.
The FTSE 100 travel operator upped its expectations for the performance of its bus operations in London, Singapore and Ireland for the year ending on 3 July. Sickness and worker retention are better than expected in London and in Singapore one-off government receipts have improved profitability.
Go-Ahead said it had a strong balance sheet and expects net debt to earnings to be at the lower end of its 1.5 to 2 times target range at the year end. Cash generation has been better than expected and the company will continue to work towards paying an appropriate dividend in the 2021 calendar year, it said.
The company's rail division is set to break even in the year to the end of July with unchanged expectations.
Chief Executive David Brown said: "After more than a year of Covid-19 restrictions limiting travel, it is great to see our buses and trains carrying more passengers as these restrictions start to ease and people enjoy the benefits of communities and businesses reopening. There are more people using our services today than at any point over the pandemic and we are ready to safely welcome more people back to our buses and trains."
Go-Ahead shares rose 0.7% to £11.99.8 at 08:20 BST.