Investors and perhaps even management at bus and rail company Go-Ahead Group (GOG) might be starting to wish they had eschewed Govia Thameslink Rail (GTR) franchise. Industrial action and significant renovation work at London Bridge have wreaked havoc on services and now there's more bad news.
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While the company's pre-close trading statement has everything in line for the financial year just ended, things aren't quite so straightforward for the current and next ones. Additional investment in the GTR franchise will mean margins over the life of the contract are expected to be "nearer 1.5 per cent than the 3 per cent previously expected". This knocked the shares by 12 per cent in early trading.
