Go-Ahead lifts profits forecast

Transport group Go-Ahead has lifted its profits forecast as the rising cost of petrol encourages record numbers of people on to its buses and trains.

The group carried more than one billion passengers in the past year, helping boost operating profits by 9% to £59 million in the final half of 2010.

Profits from its bus networks across the UK, including Metrobus in Sussex, Plymouth Citybus and Oxford Bus Company, hit a record £36.9 million as more people left their cars at home.

Its joint-venture train services, which include Southern, Southeastern and London Midland, saw profits increase by 11% to £22.1 million driven by a 4.4% increase in passenger numbers and cost savings.

Rail providers across the UK raised prices by an average of 6.2% in January, and some fares at Southeastern went up by as much as 12.8%, but Go-Ahead claimed it would not benefit from the rises which would be effectively passed on to the Government in reduced subsidies.

Shares were up 7% after the group upgraded its full-year profits forecast to about £101 million.