07.09.17
Go-Ahead profits slump under poor Southern performance
The company behind Govia Thameslink Railway (GTR), the Go-Ahead Group, has today reported a slowdown in its operating profits partially due to strike action on Southern services.
Operating profits for the company slipped by 12%, from 162.6m in 2016 to 150.6m this year, with overall revenue standing at almost £3.5bn.
In its rail division, Go-Ahead’s operating profit also fell by 16.1%, slipping to £59.9m from £71.4m last year.
Two of the operators owned by Go-Ahead, Southeastern and London Midland, enjoyed increases in passenger revenue growth of 3.2% and 4.9% respectively.
But unsurprisingly, GTR, which oversees the beleaguered Southern services, was Go-Ahead’s poisoned chalice, as passenger revenue growth dropped significantly by 4.1% since 2016.
Similarly, Southeastern profits increased by 0.3% and London Midland profits grew by 2.9% from 2016, but GTR made £86.2m less than it did in 2016 – a 6.1% drop.
The decrease in overall profit is still less than the figure Go-Ahead reported in February earlier this year, when it blamed GTR’s poor performance for a huge 35% dip in profits.
In a statement, CEO of the Go-Ahead Group David Brown apologised to Southern passengers for the months of disruption and explained that services were steadily improving.
“We apologise to our Southern passengers who have been inconvenienced for many months by disruption caused by industrial relations issues,” he said.
“Service levels are beginning to improve but there is still a lot of work to be done to provide the level of service we and our customers expect. Our primary aim is to improve the experience for our passengers and we are resolute in this commitment.”
Brown also explained that with the UK rail network rapidly turning into one of the busiest in the world, significant investment was being made in areas such as the Thameslink Programme to improve services and capacity on routes affected.
“Unfortunately, as with any large-scale improvement programme, some disruption is inevitable before the long-term benefits to improve the daily journeys of hundreds of thousands of people are delivered,” he continued.
“Go-Ahead plays a vital role in building a thriving economy and connecting communities. By providing essential bus and rail services, we help people connect with each other and get where they want to go.”
Today’s news follows London Midland losing the contract to run the new West Midlands franchise to Abellio JV last month.
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