Go-Ahead rail boom sparks maximum profit share for taxpayer

The two rail franchises operated by Go-Ahead in the south-east of the country are now booming to such an extent that it has triggered maximum profit share payments to the Government.

Go-Ahead said yesterday that passenger growth on its Southern and Southeastern franchises was so strong that profits for the full year to the end of June would exceed market expectations.

In the third quarter of the year, passenger numbers grew by 9.6 per cent on Southern and 6.4 per cent on Southeastern. As a result, Go-Ahead said profit share payments had reached a maximum. Under the formula agreed with the Government when the franchises were awarded, the two train companies continue to receive subsidies but 50 per cent of all profits Go-Ahead makes above £20m go back to the taxpayer, rising to 80 per cent on anything above £30m. Go-Ahead said this level had now been exceeded.

See http://news.independent.co.uk/business/ ... 489332.ece