Keith Ludeman leaves on a high as Go-Ahead ups profit forecast

Go-Ahead, whose trains bring nearly half of London's commuters into the capital, today upgraded its profit forecast thanks to growing passenger numbers, giving retiring chief executive Keith Ludeman an upbeat swansong.

The operator of the high-speed London to Kent service and the Southern and Southeastern rail franchises into Victoria and St Pancras expects to beat the £108 million forecast for annual operating profit.

That's after Go-Ahead's Southern franchise is forecast to see passenger revenues grow 9% in the year to July. It forecasts the same growth at Southeastern, but still expects to receive the maximum 80% taxpayer subsidy until the franchise ends in March 2014. Ludeman said the growth was emanating out of London.

"Almost half the commuters coming into London use our trains, so if London is doing well our trains are doing well.

"The cost of driving also helps. If you stand watching people at a petrol station, the fuel price means many are only putting in £10. People are using trains more."

Ahead of his retirement next month, Ludeman added: "It's an excellent time to go, we've come through the recession and got the business in good shape.

"It's nice to choose when to go rather than being nudged."