Go Ahead chief to quit

SHARES in bus and rail group Go-Ahead opened lower today after the company announced that its chief executive was stepping down.

Martin Ballinger, who is 60 this year, is to leave the company in December. Ballinger has been chief executive at Go-Ahead for 22 years and steered the company through bus industry deregulation in 1986 and flotation on the stock market in 1994.

Ballinger‘s stake in the business was reportedly worth £41m in February and he is due to receive £1.2m in dividends this year.

Go-Ahead shares began trading at 1250p, 7.5p adrift.

Go-ahead‘s bus operations span the country and its rail activities include Bedford-Brighton operator Thameslink and South Central, which it took over from axed French rail operator Connex. The company lost its Thames Trains commuter franchise earlier this year to rival First Group. Thames was fined a record £2m in April over its involvement in the Paddington rail crash, which claimed 31 lives. The franchise admitted two health and safety offences and was also ordered to pay prosecution costs of £75,000.

Go-Ahead announced a 43% rise in half-year profits to £47m in February. Analysts say that while motorists may not welcome the extension of the central London congestion charge to Kensington and Chelsea, Go-Ahead shareholders will as its London bus franchises – London Central, London General and Metrobus - will all benefit.

Chairman Sir Patrick Brown said the board had accepted Ballinger's resignation ?with great regret‘.

Sir Patrick added: ?From the buyout of a small bus company in Gateshead, he has inspired the creation of a very successful listed public limited company valued by the market at £650m. It is an extraordinary achievement of which he can be very proud.‘

Ballinger will be replaced by current deputy chief executive Chris Moyes, 54, from January 1 next year.