Go-Ahead Group - Termination of Southeastern Rail Franchise - D

Go-Ahead Group - D
Termination of Southeastern Rail Franchise
On 28 September 2021, the Department for Transport announced it would terminate the Southeastern franchise the following month after the discovery of financial misconduct. Southeastern had not declared over £25 million that should have been repaid to the government in the period since 2014. Go-Ahead's Chief Financial Officer resigned over this matter.
On 9 December 2021, the company announced that its auditors needed more time to consider the implications of the misconduct and potential fines from the Department for Transport (DfT). Consequently, the annual results would not be ready at the end of the company's financial year on 2 January 2022, which would oblige the company to request suspension of trading in its shares. The share price fell by about 15% on the day of the announcement.
On 24 February 2022, Go-Ahead published their delayed 2020–21 results, and announced the outcome of investigations into the termination of the franchise. The review found that "serious errors had been made” since 2006, with the expected cost to the company to be over £80 million. The amount owed to the DfT was increased to £51.3 million, with errors dating back to 2006. Go-Ahead also stated that they expect to have to pay a fine to the DfT, setting aside up to £30 million for this. Go-Ahead also stated that they may also owe DfT an additional £21.3 million, related to a dispute over profit sharing.
Go-Ahead Group Takeover
On 13 June 2022, a consortium of Australia's Kinetic Group (51%) and Spain's Globalvia (49%) launched a takeover bid of Go-Ahead, initially valuing the company at £647 million. Two months later, the offer was increased to £669 million. Shortly thereafter, 78.6% of Go-Ahead's shareholders voted to accept the offer.
Go-Ahead Group Expansion and Changes
During January 2023, it was announced that Go-Ahead was expanding into the Australian market via the U-Go Mobility joint venture with the engineering company UFL, this venture had been recently awarded a contract by Transport New South Wales to operate buses in Sydney. In June 2023, Go-Ahead bought Pulhams Coaches, expanding its presence in the Cotswolds.
In mid 2023, Go-Ahead Group announced that it was procuring a new fleet of hydrogen fuel cell buses to serve routes around Gatwick Airport, Crawley, and Horley, comprising 54 vehicles, it will be one of the largest hydrogen bus fleets present in the UK. The company has also invested £30 million on establishing a liquid hydrogen refuelling station, the first such facility serving buses in Europe.
Go-Ahead Group Overview
Go-Ahead Group Type: Subsidiary
Go-Ahead Group Traded As: LSE: GOG
Go-Ahead Group Industry: Public transport
Go-Ahead Group Founded: 17 February 1987, 36 years ago
Go-Ahead Group Headquarters: Newcastle upon Tyne, England
Go-Ahead Group Area Served:
United Kingdom
Go-Ahead Group Key People:
Clare Hollingsworth (Chairman)
Christian Schreyer (Group Chief Executive)
Go-Ahead Group Products: Bus and rail services
Go-Ahead Group Revenue Increase: £4,058.5 million (2021)
Go-Ahead Group Operating Income: Increase £115.5 million (2021)
Go-Ahead Group Net Income: Increase £(40.7) million (2021)
Go-Ahead Group Number of Employees: 30,573 (2021)
Go-Ahead Group Parent: Kinetic Group (51%)
Globalvia (49%)
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