Annual Report and Accounts for the Year Ended 28 June 2014 June 28 Ended Year the for Accounts and Report Annual

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Annual Report and Accounts for the Year Ended 28 June 2014 June 28 Ended Year the for Accounts and Report Annual The Go-Ahead Group plc Group Go-Ahead The Moving people Annual Report and Accounts for the year ended 28 June 2014 Annual Report and Accounts for the year ended 28 June 2014 5:30am 6:20am Moving people 5,500 weekday train Maintaining our fleets services Using cloud-based collaboration service, Each one of the billion journeys taken on Every day more than two and a Huddle, Go-Ahead engineers have access half million journeys are made on to the latest maintenance information at our services every year is important to Go-Ahead’s bus and rail services. their fingertips on tablets and iPhones. us. Our focus is on helping people move More commuters travel into Immediate access to information helps to London on our trains than on reduce maintenance ‘down time’ in depots, around, getting to where they want to any other transport provider. getting buses and trains back into service be, by using our bus and rail operations. We operate around a quarter and passengers moving. of the capital’s buses. View a short video about Huddle at www.go-ahead.com/huddle-video Our new corporate video gives a behind-the-scenes overview of a ‘day in the life’ of Go-Ahead’s operating companies, working 24 hours a day to serve our customers and local communities. www.go-ahead.com/ corporate-video-2014 8:34am 11:00am 3:28pm Staying connected A valuable service Reducing carbon emissions All new Go-Ahead buses outside London Older passengers in the UK can enjoy free bus Just 5% of domestic transport carbon emissions in are now fitted with WiFi as standard. We know travel. This is an important aspect of the social the UK comes from buses, compared to nearly 67% people want to stay connected while on the and community value bus services offer. Buses from cars and taxis. Go-Ahead continually seeks to move. Our passengers use their time on our provide access to healthcare and can prevent reduce our carbon emissions and we are leading the services to catch up on emails, engage with older people from being isolated. Around a third way in investing in carbon reduction measures on our friends and browse the internet, all of which of Go-Ahead’s bus passengers outside London buses such as using hybrid, gas and electric powered cannot be done while driving. The average time are concessionary travellers. vehicles and introducing flywheel technology to reduce customers use our free WiFi is 24 minutes. fuel consumption, reducing both costs and emissions. Read more about flywheel technology on page 20 7:03am 7:42am 8:05am Engaging with our people Supporting the economy Driving passenger growth We believe committed and contented employees are Public transport supports the economy, providing Rail passenger numbers in the UK have grown by more likely to go the extra mile for colleagues and people with a convenient way to get to work. over 60% since privatisation in 1996. The UK’s strong customers. Every year we conduct an employee survey The industry also directly employs 280,000 people performance is a result of major investment in our to gauge how engaged our people are. By listening and across the UK. In 2013, the UK rail industry railway. Billions of pounds have been invested to responding to employee concerns we can demonstrate is believed to have contributed up to £7.2bn. improve the railway infrastructure. Britain’s railway that we value the contribution they make to our business. is the safest in Europe, and newer trains and more Read about Go-Ahead’s economic Strong career opportunities exist within the Group with services improve customers’ experience. Go-Ahead contribution on page 5 65% of senior director appointments made over the past has carried record numbers of passengers on its bus year being internal promotions. and rail operations in the year. Read more about our people on pages 26 to 29 6:30pm 10:14pm 1:45am Making journey planning easier Serving our passengers 24 hours a day High quality standards Go-Ahead is leading the way in providing real-time Buses have a key role in supporting the night-time We take our commitment to the environment information and data to passengers, helping them find the economy, which has an estimated value of £65bn. seriously and are proud to be the first transport right service at the right price and access up-to-the-minute Strong public transport links support UK towns company to receive all three Carbon Trust standards travel news. Our journey planning rail app, ‘On Track’, was and city centres and public transport means a more for achievements in carbon, water and waste created in collaboration with passengers. Rail tickets for efficient use of road space – with reduced travel reduction. This is the result of several years’ work all UK journeys can be bought quickly and easily. The app delays from congestion. Go-Ahead operates buses to ‘drive energy further’ and reduce our carbon was downloaded by around 150,000 people in its first and trains through the night, helping passengers get footprint. Water meters have been fitted at key six months. where they want to be at any time of day. locations and while we won’t cut corners when it comes to cleaning our buses and trains we will Read more about our ‘On Track’ app on page 24 relentlessly focus on finding ways to maintain our high quality standards as efficiently as possible. Read more about our Carbon Trust triple accreditation on page 7 Inside this report Strategic report The purpose of this report is to address material Our integrated report aims 2 Our performance and achievements matters relating to the Group’s performance, progress and prospects. It includes an overview to present the position and 4 Chairman’s statement of the Group, what we do and how we do it and performance of our 6 Group Chief Executive’s review and Q&A gives insight into the Group’s performance and 10 Our business model future prospects from the Chairman and Group business in the context of Chief Executive. This report presents and explains 12 Our core business units our markets, bringing to life performance against key performance indicators our strategic priorities 14 Our markets and introduces the key risk to our business. 17 Our strategy and key performance indicators through case studies that 34 Managing risk demonstrate how we keep 38 Business reviews people moving through our 46 Finance review role as a responsible operator and business. Governance This section of the report details how our Board operates and is structured as well as discussing 50 Board of directors the Board’s key objectives and achievements. 52 Corporate governance report In presenting this section the Chairman highlights 68 Directors’ remuneration report our commitment to good corporate governance. The remuneration report explains our approach 84 Directors’ report and sets out details of Board remuneration for 86 Directors’ statement of responsibility the year under review. Information relating to regulation and compliance can also be found here. Financial statements This section of the report contains the statutory financial statements for the Group and Parent 87 Independent auditor’s report to the members Company, accompanied by summarised of The Go-Ahead Group plc – Group commentary and detailed notes. The independent 90 Consolidated income statement auditor’s reports can also be found in this section. 92 Consolidated statement of comprehensive income 93 Consolidated statement of changes in equity 94 Consolidated balance sheet 96 Consolidated cashflow statement 99 Notes to the consolidated financial statements 137 Independent auditor’s report to the members of The Go-Ahead Group plc – Parent Company 138 Parent Company statement of comprehensive income 139 Parent Company statement of changes in equity 140 Parent Company balance sheet 141 Directors’ responsibilities in relation to the Parent Company financial statements 142 Notes to the Parent Company financial statements Shareholder information 154 Shareholder information, financial calendar Additional shareholder information can be found in and cautionary statement this section including details relating to the Annual General Meeting, dividend payments and managing shares. Our financial calendar is also presented here. Connect with us online For more information about Go-Ahead and our operating companies visit: www.go-ahead.com Strategic report Governance Financial statements Shareholder information Moving people Since it was founded almost three decades ago, Go-Ahead has transformed from a small bus operator in north east England to one of the UK’s leading providers of passenger transport. Over the years, many things have changed, but one thing that has remained core to Go-Ahead is our commitment to our customers and our people. We employ around 23,800 people in the UK who are moving with us on our journey to growth. Over three million journeys are taken on our services each day. Our people work hard to deliver safe, reliable and value for money services for our customers. Our strategic report for the year ended 28 June 2014, as set out on pages 1 to 49, and the directors’ report, on pages 50 to 86, have been reviewed and approved by the Board of directors. Andrew Allner, Chairman 3 September 2014 Driving integrated reporting Sustainability and corporate responsibility are integral to our strategy and the way we operate at every level of the business. This is our second integrated annual report which aims to present a comprehensive view of the Group. While our approach to our strategic priorities and sustainability has always been aligned, we have taken steps to improve the reporting of this. Our former five key sustainability areas of Safety, Environment, Passengers, Employees and Communities have now been aligned with our strategic priorities of Society, Customers, Our People and Finance.
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