Go-Ahead is struggling with parts of its rail operation, but the transport group still carried a record number of passengers last year and the regional bus business made more profit than ever. The group had a decent start to the new financial year, too, yet the shares have already risen sharply and, with uncertainty set to linger over the Thameslink franchise, the good news looks priced in.
Strip out last year's £13m one-off rail contract management benefit and group underlying operating profit actually grew 8 per cent to £110m. Top marks went to the deregulated bus division, where passenger growth and fare increases of 4-7 per cent offset government subsidy cuts and fewer concessionary travellers. Profits here rose 5 per cent to £35.4m and margins held steady at over 11 per cent - it would have been more but for a £1.5m loss on a contract with Dorset council.