Revenue up but profits down at Go-Ahead
The group’s rail operations were the main contributor to the reduction in profits. The operating profit in rail fell from £61.5million in 2009 to £37.3million in 2010. In contrast the bus division’s operating profit fell slightly, from £66.6million to £63.7million. The company cites lower margins on London contracts as the main reason for the bus division’s reduced profits.
Says group chairman Patrick Brown: “We are pleased with the progress we have made this year in challenging economic conditions. All of our bus and rail operations have increased passenger revenue, highlighting the quality and value for money of our services.
“We have sold most of our aviation services division and started our yellow school bus joint venture in North America. We have also acquisitively grown our bus operations in the UK, leading to more than one billion annual passenger journeys on our bus and rail operations for the first time in our history.”