Go-Ahead Says Q3 Trading In Line With View; Sees Lower Finance Cost In FY18

(RTTNews) - Go-Ahead Group Plc. (GOG.L), a provider of passenger transport services, reported Thursday that its third-quarter trading was in line with management expectations.

In its trading statement, the company said its full year expectations for both bus and rail divisions are unchanged from the update given at the half year results on February 28. The Group remains in a strong financial position, with good cash generation and a robust balance sheet.

For the year to date period, from July 3, 2016 to April 1, 2017, regional bus generated about 1.5 percent higher revenues, in line with expectations. The growth rates are adjusted for the estimated impact of Easter falling in fourth quarter of fiscal 2017, and across third quarter and fourth quarter in fiscal 2016.

Although subdued, passenger volumes are outperforming the wider industry, with growth in some regions offsetting declining volumes in other operating areas, the company noted.

London revenues, excluding Singapore bus operations, are up about 2.5 percent for the year-to-date period, while Mileage dropped 1 percent. Mileage operated and revenue growth in London bus operations are in line with expectations.

The bus operation in Singapore is performing well, delivering high levels of punctuality on behalf of the Land Transport Authority.

In the rail division, the Southeastern revenues are up 3 percent, and London Midland revenues were up 6 percent, while GTR revenues were down 5 percent. GTR franchises through the company's 65% owned subsidiary Govia.

The company further said it has begun the process of refinancing 200 million pounds sterling bond ahead of its maturity in September 2017. As a result of lower interest rates, the company expects finance costs to reduce in the financial year to June 2018.