Go-Ahead Group PLC Revised Norway Rail Contract (5219Q)
29 June 2022 - 1:07AM
UK Regulatory
TIDMGOG
RNS Number : 5219Q
Go-Ahead Group PLC
28 June 2022
The Go-Ahead Group plc 4 Matthew Parker Street,
London, SW1H 9NP
Telephone 020 7799 8999
PRESS RELEASE
28 June 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
THE GO-AHEAD GROUP PLC
( " GO-AHEAD " OR " THE GROUP ")
REVISED NORWAY RAIL CONTRACT
Go-Ahead is pleased to announce that, following discussions over
a number of months, a new agreement has been reached between the
Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding
the structure of its rail contract.
Under the original contract, which began in December 2019, the
revenue risk associated with changes in passenger demand rested
with Go-Ahead. During the COVID-19 pandemic, the Norwegian
Government provided financial support to rail operators, preventing
material losses.
The amended contract takes effect from 1 July 2022 and runs for
the duration of the original contract, until December 2027 (plus a
two-year extension option until December 2029). The contract
provides a revenue support scheme until the end of the contract.
The amended contract also includes an incentive scheme linked to
revenue growth. As a result of these improved contractual
arrangements, the Group expects to significantly reduce the
GBP66.2m onerous contract provision relating to its rail operation
in Norway in its full year results for the year ending 2 July
2022.
Christian Schreyer, Group Chief Executive, The Go-Ahead Group,
said :
"We're pleased to have reached an agreement with the Norwegian
Government which puts our rail contract onto a satisfactory
footing.
"We're proud of our colleagues at Go-Ahead Nordic who deliver an
outstanding service and who have achieved the best customer
satisfaction ratings on Norway's railway network."
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:
Media - Andrew Clark, Go-Ahead 07977 343 846
Investors Relations - Holly Gillis, Citigate
Dewe Rogerson 07940 797 560
GO-AHEAD
Go-Ahead is a leading public transport operator, connecting
communities through bus and rail services. Our purpose is to move
you, and the next generation, towards a smarter and healthier
planet.
We employ more than 27,000 people across our bus and rail
businesses in the UK, Singapore, Ireland, Sweden, Norway and
Germany. In addition to the travelling public, our customers
include governments and local authorities. We are committed to
tackling climate change, poor air quality and social isolation.
BUS
Go-Ahead is one of the UK's largest bus operators. We run a
fleet of more than 6,000 buses across England and run a quarter of
London's buses for Transport for London. Outside London, we serve
high-density commuter markets in the North East, Greater
Manchester, East Yorkshire, Oxfordshire, East Anglia, the South
East and the South West of England. Internationally, we operate
buses in Singapore, Ireland and Sweden.
RAIL
We operate rail franchises in the UK, Germany and Norway. In the
UK, we run the country's largest passenger contract, GTR (Southern,
Gatwick Express, Great Northern and Thameslink). This is managed
through our 65 per cent owned subsidiary Govia, which is 35 per
cent owned by Keolis. In Germany and Norway, our contracts are run
exclusively by Go-Ahead.
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END
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