Rail News

DATE

September 29 , 2021


UK seizes control of Go-Ahead's Southeastern rail franchise

Reuters 
September 28, 2021 (London, UK)

  • Go-Ahead repays 25 mln stg to UK due to financial errors
  • CFO Elodie Brian steps down immediately
  • UK says could be further fines for Go-Ahead
  • Shares down 11%

Britain said it would seize control of Go-Ahead Group's (GOG.L) Southeastern rail contract after the transport company admitted financial errors and repaid 25 million pounds ($34 million) to the government, the latest failure of the UK's franchise system.

Go-Ahead postponed its annual results that were due on Thursday, announced the immediate departure of its finance director, Elodie Brian, and apologised for its conduct on the London & South Eastern Railway contract (LSER).

The Department for Transport (DfT) said the government's operator of last resort would take over the running of the service from Oct. 17, criticising the company for its conduct and threatening further action, including fines.

Shares in Go-Ahead, which also operates bus services and the Govia Thameslink Railway service, traded down 11% to 947 pence on the news.

Source
https://www.reuters.com/world/uk/uk-take-control-go-aheads-southeastern-rail-franchise-2021-09-28/

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