Transport group Go-Ahead targets £4billion after tough time


Transport operator Go-Ahead Group said it wanted to grow its share of the UK regional bus market, promote “an attractive model” for rail contracts and boost revenue to £4billion in a study launched today today.

The North East group will try to turn the page on a troubled period after discovering that it had concealed financing linked to the London & South Eastern Railway (LSER) contract managed under its Govia joint venture. He was fined £23.5million and ordered to repay £64million owed to the taxpayer.

Investors have been told of the findings of the business review which group chief executive Christian Schreyer said would aim to boost the group’s revenue by 30% to £4bn and boost operating profits to at least £150 million in the medium term.

Read more: Go-Ahead retains UK’s biggest rail contract despite ‘appalling breach of trust’

Shareholders can expect dividends of between 50% and 75% of underlying earnings per share from financial year 2022 as the group announced it would revert to its pre-Covid dividend policy.

An update from the London Stock Exchange said Go-Ahead would focus on the “basics” of performance, particularly in performance management, process standardization and digitization, and try to turn companies around under – efficient.

It also outlined plans to increase its market share in the UK regional bus market, maintain its share of the London market and replicate the London and international bus business model in certain international markets, including through possible acquisitions.

Go-Ahead said it will explore new modes of urban transit such as subway, light rail and bus rapid transit, and expand its offerings in airport and commuter transportation services. rail.

Christian Schreyer, CEO of Go-Ahead Group

Mr. Schreyer said, “This is an exciting time for Go-Ahead. My review of the business revealed fundamental strengths and identified areas where we can make improvements and sustainable growth. We plan to strengthen, digitize and decarbonize our operations, providing greater profitability and higher returns for investors as well as improvements for our customers and communities.

“Transportation is at a tipping point as we recover from the Covid-19 pandemic. The importance of mass transport is growing, reflecting trends in climate change, digitalization, urbanization and demographics around the world; and there are growing opportunities for private operators to bring their expertise to public transport markets.

“Go-Ahead’s core strength is in commuter transportation and we see opportunities for growth by encouraging people to leave their cars at home, winning new contracts and through carefully selected acquisitions.

“Today we set ambitious, yet deliverable goals. It has been a tough two years for public transportation, but Go-Ahead has an exciting future ahead of it.”

Go-Ahead also reaffirmed its commitment to reduce carbon emissions by 75% by 2035 and said it would lower its zero emissions breakeven point to accelerate fleet decarbonization.


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