Go-Ahead on a roll as petrol prices lift passenger numbers

The economy might be on the wane but transport group Go-Ahead, which runs the main Southern and Southeastern commuter routes into Charing Cross and Victoria, has seen no evidence of a slowdown as yet.

Chief executive David Brown, who took over from Keith Ludeman in July, unveiled an 11% rise in pretax profits to £97.6 million for the 12 months to July 2.

Brown, who said the firm was benefiting from cost savings as well as travellers being forced onto public transport by higher petrol prices, added: "There is still growth in our franchises. All the areas we operate in our predominantly in the South-East and London, which is still the engine room of the economy."

Go-Ahead carries one million passengers a day across its three franchises, which it runs in a joint venture with France's Keolis.

Rail profits are up 29% to £48 million after Southern and Southeastern grew revenues by 8.6% and 8.4% respectively. London Midland, which operates West Coast Main Line into Euston, registered 8.6% growth.

Go-Ahead's fuel-hedging strategy has insulated it from rising petrol costs in its bus business, which posted record profits.

But London bus profits were down 8% to £33.4 million as changes to contracts hit the firm.