by business editor Trevor Sturgess

High-speed domestic rail services across Kent are expected to boost earnings of the Go-Ahead Group when they are fully launched in December.

However, the majority shareholder in Southeastern, the operator of the high-speed service and the rest of the Kent rail network, warned that profitability from its rail operations, would be lower than the year to June 27.

The bus, rail and aviation business said pre-tax profits fell to £42m from £103.1m on sales that had gone up 6.7 percent at £2.35bn.

It highlighted the successful introduction of the high-speed preview service between Ashford, Ebbsfleet and St Pancras International and “robust” results from its Southern, Southeastern and London Midland fail franchises.

Sir Patrick Brown, group chairman, said the company was well placed for the year ahead, although it assumed that economic conditions would remain difficult over the next 12 months.

“Our rail operations should deliver a good level of profitability in the year ahead, albeit below the level achieved to June 2009,” he said. “Our aim is to supplement the expected modest growth in underlying passenger revenue with additional revenue from our new high speed rail services in Southeastern.”

The dividend was maintained at 81p.

Analyst Richard Curr of Prime CFDs said lower profits were due to writedowns in Go-Ahead’s aviation unit dealing mainly with cargo handling and Meteor parking. He warned that there were “clouds on the company’s horizon” with the warning over rail profitability.