StockMarketWire.com - Bus and train company Go-Ahead its Southeastern franchise would be taken over by the government after acknowledging mistakes were made in calculating payments due to the government as part of a profit sharing agreement.

The Department for Transport appointed the operator of last resort to take over delivery of passenger services on the Southeastern franchise starting 18 October 2021, when the company's existing contract was set to expire.

Go-Ahead said it had repaid the £25 million to the Department of Transport, admitting that 'mistakes have been made' relating to the London and Southeastern Railway profit share.

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 - remained in line with the board's expectations, company said.

'While the group is naturally disappointed by this, the decision relates only to Southeastern. Our other rail business, GTR, is not affected,' it added.

The company said it would delay results for the year ended 3 July 2021, currently scheduled for 30 September 2021.



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