Rail woe hits profits at Go-Ahead

Go-Ahead posted a 3.5 per cent fall in full-year profits yesterday after parts of its rail business felt the effects of challenging economic conditions in the UK.

The company, which operates the Southern, Southeastern and London Midland rail franchises, posted a pre-tax profit of £94.2m for the year to the end of June. Revenues rose 5.5 per cent in £2.43bn.

Its chief executive, David Brown, said economic conditions were worse than it had forecast at the time of bidding for the Southern rail franchise.

It has been shortlisted for the new Thameslink rail franchise and said it was confident it would pick up more rail contracts with 12 franchises up for grabs over the next four years.