Go-Ahead raises full-year forecasts on robust rail performance

LONDON, Dec 12 (Reuters) - British transport group Go-Ahead raised its full-year forecasts for the current financial year, citing stronger than expected performance at its Southern rail division.

The transport group on Thursday said its bus and rail divisions had both seen commercial revenue growth since the start of its financial year at the end of June, sending its shares up 2 percent.

The company, which operates the Southern (Berlin: SOT.BE - news) , Southeastern and London Midland rail franchises, said it expected to report higher revenue across all three franchises when it reports half-year results in February.

"I am pleased with the continued robust performance across our operations," said David Brown, chief executive of Go-Ahead.

"Performance in our Southern franchise was better than anticipated, and as a result our forecasts for the full year to 28 June 2014 are slightly ahead of our previous expectations."

Analysts expect the group to post full-year pre-tax profit of 69 million pounds, according to Reuters data. Investec (Frankfurt: IVKA.F - news) analyst John Lawson raised his forecast by 4 percent to 71 million pounds after the update.

Go-Ahead also repeated its forecast that it would generate operating profit of 100 million pounds ($163.67 million) at its bus division by 2015/16.

On Wednesday, rival transport operator Stagecoach said it saw opportunities to expand its rail and bus portfolio after posting a 2 percent rise in first-half pretax profit.

Go-Ahead, which has been short-listed for the Thameslink and Crossrail franchises, said it was preparing to submit strong bids for both franchises.