Britain's Go-Ahead sets aside $40 mln for potential transport fine

Feb 24 (Reuters) - British transport operator Go-Ahead (GOG.L) said on Thursday it has set aside 30 million pounds ($40.48 million) for a potential fine by the Department for Transport (DfT) relating to its London and Southeastern railway franchise, LSER.

The bus and rail operator, which previously admitted to financial errors relating to the contract, said another 26.3 million pounds were identified as being due to the DFT, totalling 51.3 million pounds. A majority of which has been paid to the UK transport department.

An independent review in December revealed "serious errors" by LSER, which led to it overcharging the country's transport department in contracts over several years. read more

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The group stopped operating the Southeastern franchise in October.

Go-Ahead's statutory pretax loss for the full year ended July 2021 came in at 6.9 million pounds, compared with a restated loss of 39.5 million pounds for the corresponding period in 2020.

The operator has been under the scanner in recent months for a spate of financial irregularities, and its stock was suspended after the company deferred the release of its full-year results for the second time in December.

($1 = 0.7411 pounds)

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Reporting by Yadarisa Shabong and Muhammed Husain in Bengaluru; Editing by Sherry Jacob-Phillips

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