By Anthony O. Goriainoff
Go-Ahead Group PLC said Thursday that it was making a 30 million pounds ($40.6 million) provision for a potential financial penalty from the U.K.’s Department for Transport, as it reported a narrowed pretax loss for 2021 on increased revenue.
The U.K. public transport operator said that in reference to its London & South Eastern Railway, or LSER, franchise–which stopped operating in October–an independent review has identified amounts totaling GBP51.3 million due to the DfT. The company added that this includes the previously disclosed GBP25.0 million, and that GBP49.2 million of this had already been paid to the DfT.
The company said other commercial negotiations are continuing with the DfT, with an estimated additional liability of GBP21.3 million.
“Notwithstanding the complexity of LSER’s franchise agreements, Go-Ahead accepts that serious errors were made in relation to the LSER franchise with respect to engagement with the DfT over several years and has apologized to the DfT,” the company said.
The company said pretax loss in 2021 was GBP6.9 million, compared with a loss of GBP39.5 million in 2020.
Revenue rose to GBP4.06 billion from GBP3.9 billion the year prior, it said.
The company said its divisions were performing in line with previous guidance, and that its expectations for 2022 remained unchanged.
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