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Go-Ahead Group PLC - Regional Bus Funding

RNS Number : 6618I
Go-Ahead Group PLC
03 April 2020
 

 The Go-Ahead Group plc  4 Matthew Parker Street, London, SW1H 9NP
Telephone 020 7799 8999


 

PRESS RELEASE

3 April 2020

THE GO-AHEAD GROUP PLC

("GO-AHEAD" OR "THE GROUP")

 

Go-Ahead welcomes Government support for critical bus services

 

 

Go-Ahead today welcomes the announcement from the Department for Transport (DfT) regarding a funding package to be provided by the UK Government to enable the continuation of vital bus services across England. 

 

The package, which includes £167m of new funding, will be available to bus operators for at least the next 12 weeks. This is a positive development for our regional bus division and we are working with the DfT to optimise this funding to benefit key workers and other people using our services to make essential journeys.

 

Reflecting the Government's guidance to avoid non-essential travel, bus passenger numbers have fallen by around 90%, therefore this financial support is crucial to ensuring we are able to cover the costs of providing essential services.

 

In our regional bus business around 30% of revenue is derived from contracts and concessionary income. In the vast majority of cases, local authorities across the country have agreed to continue paying for these services at pre-crisis levels. The Bus Services Operators Grant, relating to fuel duty, will also continue to be paid at the same levels as before the COVID-19 outbreak in the UK.

 

In line with other measures undertaken to ensure the sustainability of the business, the Board and the Executive Directors have decided to take a 20% reduction in fees and base salaries during this challenging period. 

 

Go-Ahead CEO, David Brown, said: 

 

"The health and wellbeing of our colleagues and customers continues to be our priority. Go-Ahead's companies have extensive cleaning regimes and guidance is being provided to customers to maintain social distancing when travelling on our services. 

 

"Our companies continue to provide an essential service during this crisis, and I would like to thank colleagues across the business who are working tirelessly to ensure these vital services keep running. People in key roles such as NHS workers, emergency services and those in the food supply chain depend upon these services, and our companies have been liaising with local authorities and other stakeholders to ensure that timetables meet their needs. 

 

"We are really pleased the Government has moved quickly to recognise the necessity of providing these vital lifelines and is working with the bus industry to ensure services continue in a sustainable manner."

 

ENDS

For further information, please contact:

Holly Gillis, Head of Investor Relations

07766 305 594

Press office

07896 968 971



 

 


GO-AHEAD

Go-Ahead is one of the leading UK public transport operator companies.  Our purpose is to be the local partner taking care of journeys that enhance the lives and wellbeing of our communities across the world.  Employing around 30,000 people across our businesses, over 1.2 billion passenger journeys are undertaken on our rail and bus services every year. In addition to the travelling public, our customers include governments and local authorities. We are committed to contributing to tackling climate change, improving air quality and reducing social isolation, and aim to run a zero emission bus fleet by 2035. 

 

BUS

Go-Ahead is one of the UK's largest bus operators. With a fleet of nearly 6,000 buses, we carry over two million passengers every day. We have a strong presence in London, with around 23 per cent market share, where we provide regulated services for Transport for London. Outside London, we principally serve high-density commuter markets, including the North East, Greater Manchester, East Yorkshire, East Anglia, South East and South West England. Internationally, we operate a bus contract in Singapore and two bus contracts in Ireland.

 

RAIL

The rail division operates two franchises in the UK and two contracts in Germany. In the UK, Southeastern and GTR (Govia Thameslink Railway) operate through our 65% owned subsidiary, Govia, which is 35% owned by Keolis. It is the largest rail operation in the UK, responsible for around 30 per cent of all UK passenger rail journeys through its rail franchises. In Germany, our contracts are run exclusively by Go-Ahead.


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Market Cap: £347.36 m
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