19 February 2015

Overall results in line with management expectations

Business overview
  • Overall results in line with management expectations. Full year expectations are unchanged
  • Bus operating profit up 8.4% to £45.1m, in line with strategic target
  • Rail operating profit down 2.9% to £10.2m, with margins reducing to 0.9%. Contribution to the Government increased to £108.2m
  • Challenging start to GTR franchise. Investment already underway to improve performance for passengers
  • Working with Network Rail to minimise disruption to rail passengers during major infrastructure projects, in particular the £6.5 billion Thameslink Programme
  • Proposed interim dividend increased by 4.3% to 26.6p (H1'14: 25.5p), in line with 2013/14 full year dividend increase
  • Shortlisted for Northern and TransPennine Express franchises. Exploring overseas bus and rail opportunities
  • Strong cashflow and reduction in adjusted net debt
Financial summary: H1'15
£m 		Restated*
H1'14
£m 		Increase/
(decrease)
£m 		Increase/
(decrease)
%
Revenue 1,558.7 1,370.0 188.7 13.8
Operating profit 55.3 52.1 3.2 6.1
Operating profit margin (%) 3.5% 3.8% n/a (0.3ppts)
Net finance costs (8.4) (8.6) 0.2 2.3
Profit before tax and amortisation 46.9 43.5 3.4 7.8
Profit before tax 44.7 40.3 4.4 10.9
Adjusted earnings per share (p) (see note 7) 75.6p 83.3p (7.7p) (9.2)
Proposed dividend per share (p) 26.6p 25.5p 1.1p 4.3
H1'15
£m 		Restated*
H1'14
£m 		Increase/
(decrease)
£m
Cashflow generated from operations 250.4 120.3 130.1
Free cashflow 244.7 52.8 191.9
Net cash / (debt) 169.2 (70.5) -
Adjusted net debt (254.1) (295.6) -
Adjusted net debt/EBITDA (twelve month rolling basis) 1.47x 1.90x -

David Brown, Group Chief Executive, commented:

"I am pleased with the Group's financial performance in the first half of the year, with overall operating profit of £55.3m.

"Through our regional bus operations, Go-Ahead has kept people in towns and cities across the UK moving over the last three decades and we have heavily invested in our operations over this time. In the last five years alone, we have invested over £170 million in our regional bus services. Our passengers have given us a record 92% satisfaction score, reflecting the importance we place on listening to our customers, delivering value and responding innovatively to their evolving requirements. We firmly believe that public transport is best delivered through working in partnership, with strong alliances between operators and local authorities.

"We believe that increased rail infrastructure investment is essential to improve services and we welcomed the Government's £38bn programme of infrastructure investment last year. While an investment programme of this scale will deliver enormous benefit in the long term, it will inevitably result in disruption while infrastructure improvements are made. We acknowledge the significant effect this has on passengers and are working closely with Network Rail to minimise the impact of this disruption.

"Overall, the Board's expectations for the full year results remain unchanged, with second half profits expected to be similar to those in the first half of the year for both our bus and rail divisions. The Group remains in a good financial position, with strong cash generation and a robust balance sheet supporting our progressive dividend policy and allowing flexibility to pursue value-adding opportunities."

ENDS

Half Year Results in full

For further information, please contact:

The Go-Ahead Group
David Brown, Group Chief Executive 020 7799 8971
Keith Down, Group Finance Director 020 7799 8973
Holly Gillis, Head of Investor Relations 07837 612 661
Citigate Dewe Rogerson 020 7638 9571
Michael Berkeley/Chris Barrie/Angharad Couch

David Brown, Group Chief Executive and Keith Down, Group Finance Director will be hosting a presentation for analysts at 9.00am today (19 February 2015) at Investec, 2 Gresham Street, London EC2V 7QP.

A live audio webcast of the presentation will be available on Go-Ahead's website - www.go-ahead.com.
The presentation slides will be added to Go-Ahead's website at around 7:30am today.

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