FirstGroup driving an uneven road

The UK’s biggest bus operator said bus revenues increased 2.4 per cent in its final quarter to the end of March – an improvement on third-quarter growth of 2.1 per cent. It also revealed the sale of eight bus depots in London for £80m, part of plans to offset tough conditions and build “sustainable” passenger and revenue growth.

But the company said fourth quarter UK rail revenues were up 5.9 per cent, a slowdown on the 8.1 per cent underlying growth in its third quarter, which covers the three months to end of December.

The group has around 8,000 buses operating in 40 towns and cities across the UK, carrying 2.5 million passengers every day.

The prolonged economic downturn has weighed heavily on many of the urban areas it operates in, particularly in the North of England and Scotland, while higher fuel costs and lower Government subsidies have also impact- ed.