Go-Ahead Group FY17 Profit Declines, Proposes Increase In Dividend

(RTTNews) - Go-Ahead Group PLC (GOG.L) reported profit before tax for fiscal 2017 of 136.8 million pounds, down 5.7 percent from restated 145.0 million pounds in the previous year.

Profit for the year attributable to shareholders declined to 89.1 million pounds from 93.7 million pounds a year ago. Basic earnings per share decreased to 207.7 pence from 218.2 pence last year.

However, revenue for the year rose 3.6% to 3.48 billion pounds from 3.36 billion pounds in the prior year.

The Board is proposing a total dividend for the year of 102.08 pence per share, an increase of 6.5 percent from last year, following the same percentage increase in the interim dividend. This includes a proposed final payment of 71.91 pence per share payable on 24 November 2017 to shareholders registered at the close of business on 10 November 2017.

Go-Ahead noted that regional bus trading in the early part of the year has been consistent with the fourth quarter of the prior year. Looking ahead, the company expects a slight improvement in performance as one-off costs in 2016/17 no longer impact results.

In rail, the company noted that having been unsuccessful in the bid to retain the London Midland contract, the franchise will end on 10 December 2017 reducing profitability in 2017/18.

The slowdown in the rate of growth in Southeastern passenger revenue is expected to continue as economic conditions impact customers' travel patterns. This also reduces the company's expectations of rail division profitability for the current financial year.

Internationally, the company will work towards its target of generating 15% to 20% of Group profit from operations outside the UK within five years.