FirstGroup on right track for higher profits

Transport operator FirstGroup posted a 14.3 per cent rise in first-half profit, helped by a continued strong performances from its UK rail and bus businesses.

FirstGroup, whose British rail business includes the Great Western franchise running into central London, reported an adjusted pre-tax profit of 77.7m on sales 4 per cent higher at 3.07bn in the six months to the end of September.

"We are encouraged by improving trends in some of our markets," said chief executive Tim O'Toole.

Hide Ad
Hide Ad

"However, while the economic outlook remains uncertain, we continue to focus on opportunities to maximise growth and yield as well as delivering efficiencies."

FirstGroup said underlying ticket sales at its British rail business grew 4.4 per cent during the six-month period, while British bus revenues rose 1.3 per cent and accelerated in the second quarter.

FirstGroup's American Greyhound bus network grew like-for-like sales by 1.9 per cent, shrugging off a tough US trading environment.

The company also increased its full-year cash generation target to 180m from 150m and said it was confident of cutting its 2.19bn debt pile further.

Hide Ad
Hide Ad

Mr O'Toole added: "We are making good progress in reducing net debt which is a key priority for the group. Our strong focus on increasing net cash generation within the group is yielding good results and we have increased our target for the full year to 180m (excluding business disposal proceeds).

"This strong performance, particularly against the challenging economic backdrop, demonstrates the highly cash generative nature of the group.

"The actions we have taken to mitigate the effects of economic weakness have ensured the group is in robust shape and well positioned to benefit from future economic recovery.

"The board is confident that in each of our markets there is significant opportunity to develop our businesses by achieving further profitable growth and delivering long-term value for shareholders."

Hide Ad
Hide Ad

The group operates one quarter of the UK passenger rail network.

The group's UKs passenger franchises includes First Capital Connect, First Great Western, First ScotRail and First TransPennine Express – and

one open access operator,

First Hull Trains.

Related topics: