Sussex transport operator Go-Ahead lifted annual profits by 39 per cent to £91.3 million after benefiting from a strong performance by its bus division. The group, which owns Brighton and Hove Bus and Coach Company and runs the Southern and Thameslink rail franchises, said there had been an upsurge in public transport use. Turnover in the year to July 3 improved by 13 per cent to £1.244 billion with the nationwide bus division lifting its contribution to £362 million from £311 million. Operating profits in buses rose to £51 million from £43.9 million, although Go-Ahead said margins had come under pressure in the second half due to pay increases. Go-Ahead said all its rail franchises produced results ahead of budget with yearly turnover up to £620 million from £561 million. During the period, Go-Ahead's Thames Trains franchise, which runs services between London Paddington, Oxford and the Cotswolds, was transferred to First Group. The group's aviation services division, which provides ground handling and other services to airports, showed the impact of another difficult trading year as operating profits fell to £600,000 from £1.3 million a year earlier. Despite the drop, Go-Ahead said significant progress had been made in establishing a "firmer platform", with the Gatwick operation downsized to meet reduced demand and signs of an improved performance at Heathrow. Go-Ahead further moved to shore up the business by buying the 50 per cent share of cargo handling business Plane Handling it does not already own.

Monday September 06, 2004