Bus and trains operator Go-Ahead (GOG) fell sharply in early deals on Thursday after saying that its shares face being suspended because it cannot get last year’s full year results out on time.

The company had been due to report figures for the 12 months to 3 July 2021 on 16 December 2021, but it has now confirmed complications that will mean missing that date. More seriously, it also said that it is now facing a race against time to get the results audited by Deloitte by 3 January 2022, the six-month cut-off insisted by financial rules.

Failure to get the numbers out by then would trigger an automatic suspension of the shares.

Go-Ahead shares fell more than 23% in trading on Thursday to below the level immediately in the wake of the coronavirus sell-off in March 2020. At today’s 545.77p, the stock is now trading at a two-decade low.

YEARS OF MISSED PAYMENTS

A major part of the delay is the ‘complex’ nature of the results after Go-Ahead admitted that it had breached the terms of its London & South Eastern Railway franchise contract with the Department for Transport, and faces a possible fine as a result.

‘Serious errors were made by LSER with respect to its engagement with the DfT over several years,’ the company said in a statement. ‘The group accepts that, by failing to notify the DfT of certain overpayments or monies due to the DfT, LSER breached contractual obligations of good faith contained in the franchise agreements.’

Services on the line were subsequently taken over by the government.

Go Ahead expects to make a provision for the fine in its 2021 accounts, but it needs more time to consider the implications of an independent report into the situation.

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Issue Date: 09 Dec 2021