It's rare that a British bus and rail operator will report a faultless set of results, but Go-Ahead (GOG) gave it a fair crack. The group reported an in-line set of interims which, along with a 6.5 per cent increase in the dividend, sent the shares up strongly on results day.
On a divisional basis, things are looking much the same as last time around. Lower-than-expected profits from the London bus segment were the fault of roadworks and extra heavy congestion. Rail fared better, although it was helped by the reversal of an impairment charge taken on certain assets the year before. Half-year operating profits there rose 62 per cent to £32.9m.
The company is also busy ironing out the wrinkles from its new Thameslink contract. The integration of Southern and Gatwick Express into the newly renamed Govia Thameslink Rail is now complete, but the group is working closely with the Department for Transport to ensure that passengers are taken care of during a period of major infrastructure renewal. Commuters using London Bridge station have been subject to major disruption while improvement works continue.
Analysts at Investec expect pre-tax profits of £141m for the year to June 2016, giving EPS of 215p, compared with £119m and 139p in FY2014.
| GO-AHEAD (GOG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,323p | MARKET VALUE: | £1.00bn | |
| TOUCH: | 2,315-2,327p | 12-MONTH HIGH: | 2,758p | LOW: 2,135p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 156p* | NET DEBT: | 303%** | |
| Half-year to 26 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 1.56 | 44.7 | 71.8 | 26.6 |
| 2015 | 1.67 | 52.1 | 86.4 | 28.3 |
| % change | +7 | +17 | +20 | +6 |
Ex-div: 28 Mar Payment: 12 Apr *Includes intangible assets of £84.1m, or 196p a share **Adjusted net debt (excludes restricted cash) | ||||
