Go-Ahead says it “remains in a good financial position, with strong cash generation and a robust balance sheet,” as it announced its half-year trading update for the six-months to 31 December.
It says passenger revenue and journeys in its regional bus business are expected to be “up slightly” year-on-year in the first half of the year.
“Weakness in the north east continues to impact our operations in the region, supressing overall growth rates for the division.”
It expects half-year revenue growth of 1% and 0.5% in passenger journeys. The effect of the poor economic position and congestion in Tyne & Wear is laid bare by figures showing that when this is excluded, revenue growth was 2% and passenger growth 1%.
In London, following a “stronger than expected performance” in the first quarter of the year, Quality Incentive Contract payments have since reduced. Expected half-year growth rates and 2.5% in revenue and 0.5% in mileage.