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Britain’s Go-Ahead predicts upbeat 2022 as passenger numbers recover
Global Banking & Finance Review®
Company
By Muhammed Husain
(Reuters) -Transport operator Go-Ahead Group on Monday delivered an upbeat assessment for 2022 ahead of a potential takeover, as it anticipated a busy summer with more passengers travelling on its buses and trains.
The British company agreed last month to be bought by a consortium of Australia’s Kinetic Holding Co and Spain-based transport infrastructure management firm Globalvia Inversiones for about 647.7 million pounds.
Britain’s takeover regulator said on Monday Australian transit operator Kelsian Group, which had signalled it may make a rival bid for Go-Ahead, must announce a firm intention to make an offer for the British group by August 1, or walk away.
Kelsian separately said it was still assessing its options and urged Go-Ahead’s shareholders to take no action ahead of a shareholder and court meeting on August 8.
British public transport operators have attracted takeover interest in recent months as buyers looking to cash in on the companies’ low valuations are also enticed by the support packages from the government that have steadied the sector.
Go-Ahead said it expects its regional bus operations to deliver annual operating profit before exceptional items above that of the prior two years, without providing figures for its outlook for the year ending July 2.
“Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before COVID-19,” said Christian Schreyer, chief executive officer of Go-Ahead.
The company, which runs buses in several English cities including London, plus Ireland and Singapore, also said it expects its rail businesses to yield profit in line with its expectations.
The London-listed group’s shares were down 2.2% at 1,534 pence at 0830 GMT as the broader market also traded lower.
(Reporting by Muhammed Husain in Bengaluru; Editing by Amy Caren Daniel, Kirsten Donovan)
A takeover occurs when one company acquires control of another company, often by purchasing a majority of its shares.
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.
Public transport operators are companies that provide transportation services to the public, typically involving buses, trains, and other forms of mass transit.
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