Transport group Go-Ahead has reported a 20 per cent rise in annual pre-tax profits, with the company celebrating an "excellent performance" by its rail division.
In a statement the firm revealed that its profit before amortisation, exceptional items and tax rose to £110.1 million in the year to June 30th – up from £91.9 million in the previous year.
The profit rise reflected an increase in revenue, which climbed to £1.8 billion over the 12-month period, up from £1.5 billion a year earlier.
Go-Ahead said that the performance of its rail division benefited from a full year's contribution from its Southeastern franchise, which it said had performed "strongly" since operations began in April 2006.
The company's Southern franchise was also extended until September 2009 over the year, while the business also secured the contract to operate the express train service from London to Gatwick airport. The new contract is due to begin in May 2008.
Go-Ahead also won a third franchise in June 2007, with the company to run the new West Midlands rail network from November.
It said that a high quality of service and financial discipline had fuelled passenger growth across its rail division, leading to higher operating profits and well-controlled costs.
Overall the rail division saw its operating profit climb by £23.6 million to £66.1 million over the year.
Profits for Go-Ahead's bus division also increased, but the company warned that its aviation services business had delivered "disappointing" results. Losses for the division included the impact of £1.3 million of restructuring costs, with most of the fall related to the firm's ground-handling business.
Meanwhile Go-Ahead chief executive Keith Ludeman has indicated that the group is interested in bidding for Chiltern Railways, with the company expected to go on sale before the end of the month.
Mr Ludeman told the Reuters news agency: "Absolutely, we're interested.
"It would fit well with our strategy of focusing on commuter services in London and the south-east," he added.
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