Go-Ahead Group PLC Southeastern, Board change & Full year results (1885N)
28 September 2021 - 4:00PM
UK Regulatory
TIDMGOG
RNS Number : 1885N
Go-Ahead Group PLC
28 September 2021
The Go-Ahead Group plc 4 Matthew Parker Street,
London, SW1H 9NP
Telephone 020 7799 8999
PRESS RELEASE
28th September 2021
THE GO-AHEAD GROUP PLC
( " GO-AHEAD " OR " THE GROUP ")
UPDATE ON SOUTHEASTERN CONTRACT, BOARD CHANGE AND FULL YEAR
RESULTS DATE
The Board of Go-Ahead regrets to announce that the Department
for Transport ("DfT") has chosen to appoint the Operator of Last
Resort (OLR) to take over delivery of passenger services on the
Southeastern franchise from 18 October 2021, when our existing
agreement expires. While the Group is naturally disappointed by
this, the decision relates only to Southeastern. Our other rail
business, GTR, is not affected.
This decision is a consequence of ongoing discussions with the
DfT regarding the historical calculation by London and Southeastern
Railway Limited ( " LSER ") of the profit share over a number of
years and related additional matters, as disclosed in our
announcement on 27 August 2021.
LSER's shareholders (Go-Ahead and Keolis UK) commissioned an
independent review into this matter on 11 August led by their
respective Chairs. Although the independent review is ongoing and
the contracts concerned are highly complex, the Group acknowledges
that errors have been made in relation to the franchise. The Group
has repaid the GBP25 million referred to in the DfT's statement of
this morning and will provide a detailed update on further
liabilities in its full-year results.
The Go-Ahead Group's Chairman, Clare Hollingsworth, said: "It
has always been this Group's intention to provide the best possible
public transport, and to work in partnership with the Government
and related agencies. We recognise that mistakes have been made and
we sincerely apologise to the DfT. We are working constructively
with the DfT towards a settlement of this matter."
As a consequence of these ongoing discussions with the DfT
regarding the LSER profit share, the announcement of the Group ' s
results for the year ended 3 July 2021, currently scheduled for 30
September 2021, has been postponed. A revised announcement date
will be confirmed in due course.
The Group also advises that, after a period of 13 years with the
Group, Elodie Brian has decided to resign as Group Chief Financial
Officer and will be standing down from the Board with immediate
effect. A process to appoint a successor is underway and, in the
meantime, Gordon Boyd has agreed to join the Board as Interim CFO
with immediate effect. Gordon is a highly experienced interim CFO
and has previously held senior financial roles within Drax, Infinis
PLC and Capita PLC.
The Group ' s financial results for the year ended 3 July 2021
(including the expected provisions related to the matters under
discussion with the DfT but excluding any potential financial
penalty) remain in line with the Board ' s expectations.
There is no further information required to be disclosed
relating to Gordon Boyd pursuant to Listing Rule 9.6.13.
The person responsible for arranging the release of this
announcement on behalf of the Group is Carolyn Ferguson, Company
Secretary.
ENDS
For further information, please contact:
Investor Relations
Citigate Dewe Rogerson - Holly Gillis 07940 797560
Media
Go-Ahead Press Office communications@go-ahead.com / 07977
343846
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END
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