Go-Ahead, the British rail and bus operator, said that its Gatwick Express franchise has suffered a fall in passenger numbers due to fewer people flying from the airport.
Despite the decline, the transport company, which operates the Southern, Southeastern and London Midland franchises, beat market expectations for full year profit and held its dividend payment.
Go-Ahead said that the new financial year has begun as it had previously guided despite the tough economic climate.
The Newcastle-based company recently received a boost when Govia, the joint venture majority owned by Go-Ahead, retained the Southern contract, which includes Gatwick Express. Go-Ahead said that despite the fall in passenger numbers using the rail link to Gatwick, the business contributed a small operating profit.
Pre-tax profits fell 14.5 per cent to £112 million for the year to June 27, on sales up 6.7 per cent at £2.35 billion.
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Go-Ahead publishes results as the spotlight shines on possible takeover activity in the transport sector. Rival National Express has been trying to fend off the interests of a group of would-be bidders, led by Spain’s Cosmen family, its largest shareholder.
The Cosmen family and CVC, its private equity partners, have nine days in which to launch a final offer or walk away, under a Takeover Panel-imposed “put-up-or-shut-up” deadline on September 11.
National Express is considering a rights issue to try to deal with its debt pile. Meanwhile, other suitors, led by Stagecoach, are waiting in the wings. Industry sources say that other bus and rail groups, including Arriva and Go-Ahead, are also considering whether they might get involved in a bid.
Go-Ahead will pay a final dividend of 55.5p a share on November 20.