Southeastern: Losing rail franchise to cost firm £81.3m

Go-Ahead Group said it expected being stripped of the Southeastern rail franchise to cost the company £81.3m.

The franchise was removed last year when the Department for Transport (DfT) said it had failed to declare more than £25m of taxpayer funding.

The company said it had put aside £30m for a potential fine.

So far it said it had paid £49.2m to the government, and it expected to eventually hand over £51.3m.

Go-Ahead's new chief executive has apologised for the problems, as the firm identified "serious errors" in the way the franchise was run and over the way it dealt with the DfT.

Christian Schreyer, who joined last November not long after the franchise was lost, said he was "optimistic" the issues could be resolved soon.

He said: "It's been a very challenging year for Go-Ahead and our shareholders, for which I apologise, on behalf of the board."

The company has already apologised to the government for the failings, which had led to the firm's shares being suspended from the London Stock Exchange as accountants needed more time to work out what impact the problems meant for the company.

The network which was run by the firm is one of the busiest in Britain, stretching across south-east England, including London, Kent, East Sussex and the High Speed 1 line.

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