TRANSPORT group Go-Ahead said yesterday it was performing as expected after maintaining revenue growth at its three rail franchises, and maintained its full-year predictions.

In an update for the year to June 27, Newcastle-based Go- Ahead said Southern, which includes Gatwick Express, achieved a rise in revenues of between seven and eight per cent, of which about half came from additional passenger numbers.

Southeastern saw a mid single- digit percentage rise based on a small increase in passenger numbers, while Go- Ahead’s new London Midland franchise achieved high single- digit growth, with about half due to higher passenger numbers.

The company’s rail arm received a boost earlier this month when Govia, the joint venture majority owned by Go-Ahead, retained the Southern contract.

In its bus division, like-forlike revenues from deregulated operations grew broadly in line with the 6.6 per cent seen in the first half of the year.

It has recovered a £10m increase in fuel costs through fare increases and consumption savings, while the group has hedged all of its fuel requirements for the next financial year at 47p per litre, compared with 43p this year.

The company, which consumes about 110m litres of fuel a year, recently completed hedging for the year to June 2011, at 41p a litre.

Across the group, Go-Ahead said it was confident of delivering operating results in line with expectations. The figures will be published in September.

It added: “We continue to assume that economic conditions will remain difficult and are pleased with progress since April.”