Go-Ahead year profit up

By John Bowker

LONDON (Reuters) - Bus and rail operator Go-Ahead (GOG.L) said on Friday a fourth quarter surge in bus and rail traffic boosted annual profit by a fifth last year, while economic uncertainty was not dampening its outlook.

The company, which also has an aviation services division, reported full-year pretax profit up 19 percent at 131.1 million pounds in the year to June 28, while trading over the summer had been in line with expectations.

"We have never been in better shape," Finance Director Nick Swift told Reuters, echoing fellow bus and train companies such as Arriva (ARI.L) and Stagecoach (SGC.L) in reporting a rise in interest in British public transport.

Go-Ahead said in June it would beat its expectations for the full year as more people switched to public transport amid rising petrol prices. All three of its divisions increased operating profit, with aviation recovering from a tough 2007.

The shares, which have gained nearly 25 percent in the last three months, were down 0.6 percent at 1,938 pence by 0829 GMT, valuing the firm at 840 million pounds.

"We saw an acceleration of growth through the second half -- bus passengers were up 4.9 percent in the fourth quarter," Swift said.

"Part of that is the price of fuel -- filling a tank is that much more expensive -- but public transport is generally cheaper than driving a car," he added.

But he also said the firm had to be watchful of the economy, as inflationary pressure could be damaging to costs.