GO-AHEAD group's loss of the London Southeastern rail franchise is to cost the business around £81.3m, the company said yesterday.

Bosses revealed they expect to pay the government £51.3m over its failures in running the service, which it lost last year, and has put aside £30m for a possible fine. Around £49.2m has already been paid.

The chief executive apologised for the problems, as the group identified "serious errors" in the way the franchise was run and the way it dealt with the Department for Transport.

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

Bosses also said a further £21.3m hit could be taken as part of the financial implications of the Southeastern mismanagement, failings which saw Go-Ahead's shares suspended from the London Stock Exchange.

The group is expected to report back on a review in the next few weeks.

(c) 2022 City A.M., source Newspaper