Go-Ahead Group Reaches Agreement With Dept. For Transport

(RTTNews) - Go-Ahead Group Plc. (GOG.L), a provider of passenger transport services, said Tuesday that it reached an agreement with the Department for Transport, or DfT, regarding contractual matters in relation to the GTR franchise. The Group also announced that its expectations for the current financial year remains unchanged, which is in line with the trading update on November 29.

The contractual agreement resolves matters relating to the industry-wide failures concerning the introduction of the May timetable, as well as bringing to a close discussions around other outstanding contractual variations.

As part of the agreement, a plan for the remainder of the franchise term to 2021 has been agreed. GTR will provide 15 million pounds of funding this year for passenger enhancements.

The agreement reduces uncertainty around the future of the GTR franchise and its financial performance. A profit-sharing mechanism with the DfT will also be introduced for the remainder of the franchise.