Go-Ahead Group turns abroad after consumer spending squeeze puts brake on domestic rail
GO-AHEAD Group is aiming to drive up profits from its international operations as a consumer spending squeeze puts the brake on its domestic rail business.
Go-Ahead Group is aiming to drive up profits from its international operations
Shares in the FTSE 250 company, whose Southern rail franchise has been hit by strikes, fell 203p to 1550p as it posted a 5.7 per cent drop in annual pre-tax profit to £136.8 million.
It expects its rail division to be hit this year by a continued slowdown in Southeastern passenger revenue “as economic conditions impact customers’ travel patterns”.
We apologise to our Southern passengers who have been inconvenienced for many months by disruption
It is looking to generate 15-20 per cent of its profit within five years from overseas operations.
Go-Ahead’s chief executive David Brown apologised to Southern customers in a statement.
He said: “We apologise to our Southern passengers who have been inconvenienced for many months by disruption caused by industrial relations issues.
Shares in the Southern rail franchise has been hit by strikes, fell 203p to 1550p
Southern rail commuter: It's been a life of misery and stress
“Service levels are beginning to improve but there is still a lot of work to be done to provide the level of service we and our customers expect.
“Our primary aim is to improve the experience for our passengers and we are resolute in this commitment.”