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Go-Ahead review reveals Southeastern rail overcharged Britain, shares slump

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By Reuters

-British transport group Go-Ahead said an independent review revealed “serious errors” by its London and Southeastern railway franchise, LSER, which led to it overcharging the country’s transport department in contracts over several years.

Go-Ahead’s shares tumbled 22% by 0925 GMT, as it once again pushed back the release of its financial results for the year ended July 3, 2021. As a result, its stock will be suspended from Jan. 4, although the results are expected to be published before January-end.

Britain in October seized control of Go-Ahead’s Southeastern rail contract after the transport company admitted to financial errors and repaid 25 million pounds ($33.01 million) to the government.

Go-Ahead said the Department For Transport (DfT) could impose a fine on the company. Go-Ahead and its auditor are considering including a provision for the potential penalty in its 2021 financial statements.

($1 = 0.7574 pounds)