Go-Ahead Group PLC GTR Contractual Variations (9130K)
July 13 2017 - 1:00AM
UK Regulatory
TIDMGOG
RNS Number : 9130K
Go-Ahead Group PLC
13 July 2017
The Go-Ahead Group plc 4 Matthew
Parker Street, London, SW1H 9NP
Telephone 020 7799 8999
PRESS RELEASE
13 July 2017
THE GO-AHEAD GROUP PLC
("GO-AHEAD" OR "THE GROUP")
GTR contractual variations
The Go-Ahead Group plc (Go-Ahead) today announces that agreement
has been reached with the Department for Transport (DfT) regarding
the contractual variations and claims on the GTR franchise which
relate to the impact of industrial action on train performance over
the past 18 months.
In agreement with the DfT, GTR will fund a package of
performance and passenger improvements worth GBP13.4m. This outcome
is in line with the financial judgements made by management and
consequently, expectations for the year ended 1 July 2017 remain
unchanged.
Go-Ahead stated at its half year results in February that the
range of uncertainty around profitability of the Group's rail
division for the year to 1 July 2017 was +/-GBP15m. This range
related to the outcome of discussions with the DfT regarding the
impact of industrial action on train performance, and other
contractual variations. The contractual discussions relating to the
impact of industrial action on train performance have now been
resolved and the outcome is very close to management's central
judgements. The remaining range of uncertainty is +/-GBP5m,
reflecting a number of other ongoing contractual variations;
including rolling stock cascades and timetable specifications,
which remain under discussion with the DfT.
This agreement resolves financial uncertainty relating to past
industrial action and allows GTR to focus on improving services for
Southern customers and delivering the significant passenger
benefits associated with the Thameslink Programme.
ENDS
For further information, please contact:
The Go-Ahead Group
Holly Gillis, Head of Investor Relations 020 7799 8984
Sarah Boundy, Group Corporate Communications Director 020 7799 8983
Citigate Dewe Rogerson
Michael Berkeley/Chris Barrie/ Eleni Menikou/Toby Moore 020 7638 9571
GTR FUNDING IMPROVEMENT COMMITMENTS
The DfT has determined how the GBP13.4m will be used:
-- GBP7m will be put into a fund for the DfT to allocate to
projects and improvements that will directly benefit passengers
-- GBP4m will fund 50 on-board supervisors over the next two
years (from January 2018) to improve access to staff for passengers
on trains
-- The remaining GBP2.4m will target performance improvements.
GTR is now required to submit a remedial plan under the franchise
agreement.
GO-AHEAD
Go-Ahead is a leading UK public transport operator, providing
high quality services in the bus and rail sectors. Employing around
29,000 people across the country, over one billion passenger
journeys are undertaken on our services each year. We are committed
to operating our companies in a safe, socially and environmentally
responsible way and are proud to have been accredited with triple
Carbon Trust Standard for reductions in carbon, water and waste. In
addition to the travelling public, our customers include the
Department for Transport, Transport for London (TfL) and local
authorities.
BUS
Go-Ahead is one of the UK's largest bus operators. With a fleet
of around 5,200 buses, we carry over two million passengers every
day. Our operations are focused on high density commuter markets.
We have a strong presence in London, with around 24 per cent market
share, where we provide regulated services for TfL. Outside London,
we operate services in Oxford, East Anglia, the South East,
Southern and north east England. In September 2016, the Group began
operating a bus contract in Singapore, on behalf of the Land
Transport Authority.
RAIL
The rail operation, Govia, is 65 per cent owned by Go-Ahead and
35 per cent by Keolis. It is the largest rail operation in the UK,
responsible for over 30 per cent of all UK passenger rail journeys
through its rail franchises: GTR (Govia Thameslink Railway)
Southeastern and London Midland.
Disclaimer
Certain statements included in this press release contain
forward-looking information concerning the Group's strategy,
operations, financial performance or condition, outlook, growth
opportunities or circumstances in the sectors or markets in which
the Group operates. By their nature, forward-looking statements
involve uncertainty because they depend of future circumstances,
and relate to events, not all of which are within the Group's
control or can be produced by the Group. Although the Group
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Nothing in this press
release should be construed as a profit forecast and no part of
these results constitutes, or shall be taken to constitute, an
invitation or inducement to invest in The Go-Ahead Group plc or any
other entity, and must not be relied upon in any way in connection
with any investment decision. Except as required by law, the Group
undertakes no obligation to update any forward looking
statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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