Rail and bus company Go-Ahead has enjoyed a strong 2014 and has recorded a significant jump in profits over the course of the year.
The Newcastle-based firm reported a 44.5 per cent increase in yearly profits to £91.2 million thanks to a record number of passengers. Go-Ahead has benefited from closing its defined benefit pension scheme which secured a £12.1 million gain for the group. The company is now looking forward to the coming year with a number of projects in the pipeline.
Go-Ahead currently owns a major stake in Govia which, along with Thameslink, was recently awarded a new franchise for the Thameslink rail network. The Department for Transport awarded the franchise to the joint venture in May and will see the companies oversee services from London to the likes of Brighton, Peterborough and Cambridge among other south-east destinations.
Spanning for seven years, Govia Thameslink will be responsible for the delivery of almost 1,400 new electric carriages to provide 50 per cent more capacity and 10,000 extra seats every weekday. The joint venture aims to ease the morning commute into central London by the end of 2018, providing more efficient, cleaner and more reliable journeys.
David Brown, Go-Ahead group chief executive, spoke of his delight at the company's performance: "This was a particularly busy and exciting year for Go-Ahead in which we made excellent progress towards our strategic objectives. We remained focused on delivering high quality value for money services for our passengers and strengthened the finances of the business.
"We continued to make a positive contribution to society through the services we run, careful environmental stewardship and the taxes we pay."
Go-Ahead's bus operations also performed well over the 12 months to June 28th 2014 with customer satisfaction hitting 92 per cent.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.