30.11.17
Go-Ahead profits stabilise as year-long strike row draws to a close
The Go-Ahead Group’s trading has been in line with expectations across its rail business during the first four months of the year (2 July – 29 November) as the company seeks to put its year-long history of strike action behind it.
Go-Ahead, which is a 65% shareholder of the Govia brand, said today that rail has been “satisfactory” during the period, and that the organisation is now “wholly focused” on further improving passenger services and supporting the Thameslink Programme as its long-standing dispute with rail unions draws to a close.
The company had been blighted by strike action from unions RMT and Aslef for just over a year, which caused significant disruption and financial burden to its Govia subsidiary. In fact, operating profits released back in September indicated that GTR had experienced a considerable 12% drop in profits and, partially as a result, Go-Ahead’s operating profit also slipped by over 16%.
But it now seems to be recovering from this slowdown, with Go-Ahead saying in a statement: “In GTR, on a moving annual average basis train performance has consistently improved since the period of intense industrial action ended in January 2017.
“In Southern, the number of cancellations has fallen by 8% and punctuality levels have improved by 16% in the 11-month period. Earlier in the month, we were pleased that ASLEF members ended their industrial dispute. GTR’s management team can now solely focus on improving performance levels for our customers.”
Go-Ahead’s Southeastern franchise has also delivered positive growth, with passenger revenues growing by 2.5%. The company is also in the running to operate the franchise under the new contract, due to start in 2019 and for which an invitation to tender was published yesterday.
“We are confident that we will submit a deliverable and attractive bid for customers, the DfT and shareholders,” the organisation said.
South Eastern is also set to become the next franchise to be taken forward in a more integrated structure, where the operator works closely with Network Rail to deliver both infrastructure and operational upgrades.
Go-Ahed’s CEO David Brown praised the government’s decision to press ahead with these plans, saying: “We welcome the strategic vision for the railways announced yesterday by the secretary of state for transport. We are pleased to see proposals to strengthen the partnership between the public and private sector, aimed at further improving services for customers.
“We look forward to working with the government to understand the strategy in more detail.”