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Go-Ahead Group on track to deliver profits

Go-Ahead Group is reporting its full-year figures on Thursday. The consensus is for revenue of £2.64 billion and operating profits of £96 million.

London midland train being washed
Source: Bloomberg

The company is trading at £22.22. The stock is up 5.7% since Go-Ahead revealed a 30% jump in first-half profits in February. The bus and rail operator stated that its rail business produced a 56% increase in first-half profits to £10.5 million, but the division is not likely to yield any profits for the second-half.

The company currently runs London midland rail, Southern and South-eastern rail franchises. It is also in the process of acquiring the Crossrail contract.

The Newcastle-based company issued a positive trading report in June; the firm reiterated its commitment to achieving an operating profit target of £100 million by 2015-2016.

Equity analysts are bullish on the stock; out of the 15 recommendations, 11 are buys while the remaining four are holds.

The stock is receiving support at £21. A good set of results could drive it back to the recent high of £24.09.

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