Bus operator Go-Ahead made €2.6m profit from Irish routes

Go-Ahead Ireland's managing director Andrew Edwards: Ramsey Cardy/Sportsfile

Donal O'Donovan Twitter Email

May 21 2022 02:30 AM

Go-Ahead's Irish subsidiary made a €2.6m profit last year, according to accounts just filed for the business.

Go-Ahead Ireland, whose managing director here is Andrew Edwards, operates more than 200 buses owned by the State on routes in Dublin and the surrounding commuter counties under contracts with the National Transport Authority (NTA).

The company is paid per kilometre for servicing the routes it operates, but it is subject to potential fines if its service falls below strict targets. The accounts say the Irish venture met its key target of operating 98pc of scheduled kilometres in the 2021 financial year despite a hit to staffing as a result of Covid.

In 2021 reduced fuel costs and an improved miles-per-gallon as a result of a decrease in traffic levels helped boost the firm’s financial performance.

Turnover for the 12 months to the end of June 2021 was €44.7m, generating a profit after tax of €2.6m. At the end of the financial year the company had 610 employees in Ireland.

The 2021 revenue was up from €38.2m a year earlier and a €1.8m pre-tax profit. Go-Ahead’s Irish arm was established in 2017 with a contract to operate bus services in the outer Dublin area.

The contract, which was the first open tender process run by the NTA, comprised 24 routes, 125 buses and approximately 350 drivers.

A second contract was awarded in 2018 to run six routes linking Dublin to major commuter towns in Offaly, Laois, Kildare and Meath, requiring around 80 drivers.

Stock market listed Go-Ahead’s main market is the UK where it runs more than 6,000 buses as well as some passenger trains.

The company also operates in Norway, Germany and Singapore.

Last month the UK’s accounting watchdog, the Financial Reporting Council, opened a probe into accountancy giant Deloitte’s auditing of Go-Ahead’s financial affairs from 2016 to 2021.

The probe follows on from a £23.5m (€28m) fine imposed on Go-Ahead in March by the UK government for overcharging on contracts to operate rail services there.

Go-Ahead said last December that an independent review had revealed “serious errors” by its London and Southeastern railway franchise that had caused it to overcharge for UK government for contracts over a period of several years.

The Financial Reporting Council regulates accountants and auditors, which is why its probe is focused on Deloitte, not on the transport company itself.

Deloitte Ireland is auditor of the business here.

The Financial Reporting Council investigation of Deloitte’s audits will include the unit here in Ireland.