Anyone here??? i've been buying these lately, dragged down by Stagecoach results this week (which were actually superb, but mentioned exposure to declining London passenger numbers due to job cuts in the recession) - however FGP's figures were out only a month ago and were block buster along with the chairman pointing out they dont have that particular exposure and announced the company as literally recession proof...
I haven't been buying much for a while but couldn't resist these at these levels and will happily add more on further weakness...

I'm not a holder Ted they are too expensive to me.

Tipped today in the Investors Chronicle and stock doing well this morning.

Chart and TA looking strong..........

Tips of the week 16/04/2010

* Buy - Shire, First Group, Discovery Metals, Sabien Technology, SVG Capital

Fairly recent broker note.....

Arbuthnot Securities said that the firm remains attractive "due to its firm base of contract-based and inherently defensive earnings". It continued to rate FirstGroup shares as a 'strong buy' with a 600p target price. The shares lost 16.8p to 398.3p.

Well, 600p is looking quite far right now. Shares down further 9.7p today at 388.25p. They seem very attractive in my view.

Brokers seem to like the stock (from hemscott premium)

FirstGroup PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
19-04-10 BUY 275.00 39.10 20.60 288.00 42.10 20.60

KBC Peel Hunt Ltd
16-04-10 HOLD 265.52 39.41 20.63 287.70 41.95 22.69

Charles Stanley
16-04-10 HOLD 264.00 38.50 20.70 324.00 47.00 22.50

Arbuthnot Securities
14-04-10 SBUY 273.54 39.80 20.70 282.39 40.70 20.70

Shore Capital
09-04-10 BUY 273.90 40.30 20.70 291.50 43.00 22.80

Investec Securities
26-03-10 SELL 270.22 38.72 20.63 305.71 43.87 21.66

Astaire Securities
23-02-10 None 262.00 40.10 20.60 268.00 40.40 22.70

Collins Stewart
24-12-09 BUY

Nomura Research Institute
01-07-09 NEUT 260.00 38.50 20.60 339.00 50.30 22.70

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 269.36 39.43 20.67 290.39 42.00 22.50

1 Month Change -3.25 -0.24 0.05 -21.27 -3.28 -0.23
3 Month Change -3.65 -0.13 0.05 -26.37 -4.03 -0.22


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 10.35% -24.70% 6.52%
DPS 10.11% 17.44% 8.85%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 772.10m 745.18m 799.45m

EBIT 464.30m 463.46m 470.42m

Dividend Yield 4.64% 5.45% 5.94%

Dividend Cover 2.98x 1.91x 1.87x

PER 7.24x 9.61x 9.02x

PEG 0.70f -0.39f 1.38f

Net Asset Value PS -309.61p p p


Going into 2011 on a miserley P/E of just over 9 way too cheap imho.

16-04-10 16.04.10: -4.7, (370.6)

IC says Buy (374.5p): BULL POINTS Contract-backed bus and rail revenues - Growth potential in US school buses - Share rating low relative to peers - Nice dividend yield BEAR POINTS High debt - Greyhound under pressure.

Any views on these? I've been watching them for a few months - the chart isn't exactly inspiring, but the yield is starting to look attractive (6.52%).

A turn around today, with fair volume.

I am removing ALL my research from here due to the constant personal abuse, defamation and distortions of it posted by:

ptholden

hlyeo98

halifax

blackdown

kimoldfield

cynic


This bunch of abusive retards is the reason MoneyAM will NEVER have a forum worth reading.

I have reported them to support by they do nothing, either because they want to force me to PAY them for the Traders Room or because they are too lazy to do anything. Maybe the people in support are the ones perpetrating the abuse, so as to force people to pay for the premium boards. Either way the service is sh1te and a disgrace to the finance industry. No wonder there is nobody left here apart from morons.

I will continue posting my good research on boards that are run in accordance with FSA and LSE listing rules and the interests of the market, not here where ar5eh0les rule the boards and all decent research is buried under their piles of sh1te.

Another up day!

Will fall slightly after results next week ...but divi will compensate imho.

Results tomorrow.

Final Results.

FINANCIAL SUMMARY 12 MONTHS TO 31 MARCH 2011 2011 2010 Change

Continuing operations: restated4

Revenue 6,429.2m 6,261.9m +2.7%

Adjusted EBITDA1 778.2m 763.9m +1.9%

Operating profit 309.3m 364.2m (15.1)%

Adjusted operating profit2 457.4m 449.6m +1.7%

Profit before tax 127.2m 175.3m (27.4)%

Adjusted profit before tax2 275.0m 259.7m +5.9%

Basic EPS 21.4p 26.9p (20.4)%

Adjusted basic EPS2 41.2p 38.9p +5.9%

Proposed final dividend per share 15.0p 14.0p +7.1%

Net debt3 1,949.4m 2,281.5m (14.6)%

Gap upto previous support @360 - still holding.

Two upgrades today and gap filled (for now).

Just sold half for +53

Are you still trading this one skinny? Looks to have growth potential (approaching 52 wk low) plus divi.
Coming up to divi date on the 13th July '11.

Harry - yes for my sins. RBS came out with a buy and target price of 430p - probably the kiss of death. Yield still @6.72%

On edit - yes ex divi 13th July @15p 52 week low was/is 308.70

Am very tempted to have a flutter for the growth and the divi (Awesome yield).
Not really a sector I like very much though, but can't see anything bad lurking in the wings.

Last of the big spenders.

The FirstGroup plc Share Incentive Plan (the "Plan")

In common with all eligible employees, each of the executive directors of
FirstGroup plc ("the Company") and members of the Executive Management Board of
the Company (who the company regards as persons discharging managerial
responsibility (PDMRs) under the Listing rules), have been invited to apply for
Partnership Shares under the Plan on a monthly basis.

On 1 July 2011, in accordance with standing instructions for the Plan the
following share dealings took place:

Clive Burrows, a member of the Executive Management Board, chose to contribute
to purchase 29 Partnership Shares. The Company matched these shares with shares
on a two for three basis to the value of GBP20. Accordingly, Clive Burrow's
received 5 Matching Shares. Following these transactions, Clive Burrows'
beneficial holding is 82,495 shares.

The shares were purchased at a price of 343.69 pence per share.

4 July 2011

IN FOR DIV

I wish I was. Had to make a choice as not enough cash for all, so left out FGP. I think the sp may temporarily take a dive post divi, so opted to put my cash elsewhere. Good divi though.

These have been a little gem for me since April - not sure whether to move on now - hmmmmm.

Would expect sp to remain high up until divi date (13th). After that..........? Depends on whether you want the divi or not I suppose.

I did originally buy it based on its yield which, based on the shares I have left is still worth a couple of hundred quid.

Peaking above May's high.

I was tempted to add here in advance of the ex dividend (15p) tomorrow. A well timed trade today would have almost covered it! Hey Ho.

Same with CHG.

Friday 15 July 2011

FIRSTGROUP PLC
AGM STATEMENT AND INTERIM MANAGEMENT STATEMENT


FirstGroup plc ("the Group") will provide the following update on trading
during the first quarter period ("the period" or "Q1") from 1 April to 30 June
2011 at the Group's Annual General Meeting in Aberdeen today.

The Group provided an update on trading as part of its preliminary results
announcement on 11 May 2011. Since then overall trading for the Group, during
the first quarter of the new financial year, has developed in line with
management's expectations.

Tim O'Toole, Chief Executive commented:

"I am pleased to report trading during Q1 of the new financial year is in line
with our expectations. We are encouraged by improving trends in UK Rail and
Greyhound and the continued steady performance in UK Bus and First Transit. In
First Student we are implementing our detailed plan to recover performance and
strengthen the operating model to enable the business to harness its potential.

"We will continue to build on our record of strong cash generation and are
targeting a net cash inflow of GBP150m in 2011/12. The Board is committed to its
key priorities of increased cash generation to support capital investment, debt
reduction and dividend growth of at least 7% per annum."

UK Bus

Like-for-like passenger revenue growth of 0.7% reflects a continued steady
progress against a tough regional economic backdrop. With new leadership in our
UK Bus division we have renewed our focus on delivering improved service
quality and growth through network development, simplified fares and marketing.
While retaining our cost discipline we believe we can transition to increased
growth by developing the significant opportunities that exist within our
established and well positioned networks.

UK Rail

We continue to see strong growth across our rail businesses with like-for-like
passenger revenue growth of 8.5% during the period. The increased demand for
rail services has continued during Q1 leading to good volume growth across all
of our rail franchises. We remain focused on retaining our leadership position
in rail and continue to take an active role in shaping the future of the UK's
railways including through the newly established Rail Delivery Group. We
continue to progress discussions with the DfT on the proposal to extend our
First TransPennine Express franchise and look forward to developing further
opportunities as we move through the tendering process for the next generation
of rail franchises.

First Student

During the period we made good progress in implementing the recovery plan to
address the performance of First Student, which is impacted by the pressure on
state and municipal finances in the US, and to strengthen the operating model
to enable the business to harness its full market leader potential. As
previously indicated, we anticipate pressure on margins to continue into the
first half of our financial year reflecting last year's disappointing trading
performance. A focused retention strategy and an improved performance during
the current bidding season has resulted in retention of our contracts that came
up for renewal returning to more normal levels of prior years for the school
year 2011/12. As the bidding season draws to a close we are pleased to have
secured new contracts including 8 conversions. We anticipate that the total
operating fleet for the new school year will be broadly in line with 2010/11.

First Transit

Our Transit division continues to perform well with trading developing in line
with our expectations. We have a solid pipeline of opportunities in the key
business segments in which we operate and continue to utilise our excellent
reputation and track record to retain contracts and win new business. During
the period we continued to develop our shuttle bus portfolio with new contracts
to operate bus services at the universities of Yale and Kennesaw in the US as
well as further new business in Fort McMurray in Alberta, Canada.

Greyhound

Encouraging revenue trends have continued during the period with like-for-like
revenue growth of 3.7%, up from 1.6% during Q4 2010/11. Against the backdrop of
slow economic recovery this performance reflects the good progress made in
transforming Greyhound. We continue to develop sales channels and reduce the
cost of sale through a range of means including self service kiosks and website
enhancements which has led to online sales increasing to 30%. Greyhound
Express, our new point to point service launched in December 2010, has been
very successful and is delivering strong volume and sales growth. During the
period we expanded the service to additional locations in the midwest and
northeast of the US.

Excellent turnaround since April - looking for 370 sooner rather than later.

Blimey - didn't expect it quite so quickly :-)

A close above 380 would see it through a "noisy" chart area - one can but hope :-)

FIRSTGROUP PLC

STATEMENT RE: FIRST TRANSPENNINE EXPRESS AND FIRST CAPITAL CONNECT RAIL
FRANCHISES

FirstGroup plc, the leading transport operator in the UK and North America,
welcomed today's announcement on rail refranchising by the Department for
Transport (DfT).

The First TransPennine Express franchise will be extended for over three years
to 1 April 2015, which will allow greater flexibility in the refranchising of
the future TransPennine Express and Northern franchises.

The Thameslink/Great Northern franchise, operated by First Capital Connect,
will be refranchised in 2012/13 with a replacement franchise to commence from
15 September 2013. This will help to facilitate the continued project delivery
of the Thameslink Programme, in particular the introduction of new rolling
stock, which will be completed after the expiry date of the existing franchise.

Commenting, Tim O'Toole, Group Chief Executive, said:

"We are delighted that the DfT has taken the decision to extend the First
TransPennine Express franchise to 1 April 2015. Since we started operating the
franchise in 2004 we have delivered a number of improvements including the
introduction of a GBP260m new train fleet and passenger numbers have grown from
13m to 24m per annum. We will continue to work closely with the DfT and our
stakeholders in the region to develop plans for the future of rail in the north
of England and to further develop the Anglo-Scottish services.

"At First Capital Connect we have worked closely with the DfT and Network Rail
to deliver the initial phase of the Thameslink Programme successfully. This is
a major investment that is already bringing benefits to passengers and will
transform a key part of London's transport network. Our unrivalled knowledge
and experience of managing this key project gives us a strong foundation to
continue to help deliver this programme in the future franchise."

Back on the list @310 - yield 6.92%

What a difference a weekend makes :-)

Just closed here 333.5 +23.

Trading Statement.

This is a good stock to be in IMO. Good capital and dividend growth propects.

Friday 30 September 2011

FIRSTGROUP PLC

Disposal of German bus business

FirstGroup today announces the disposal of its German bus operation for a gross
consideration of EUR5.5m. FirstGroup Deutschland GmbH, which operates
approximately 130 buses in the Rhineland Pfalz region of South West Germany,
has been sold to Marwyn European Transport plc ("MET"), a wholly owed
subsidiary of Marwyn Management Partners plc.

Commenting Tim O'Toole, Chief Executive, said: "The disposal of our small
German bus business marks a further step in our programme of small asset and
business disposals as part of our strategy to focus on our core operations in
the UK and North America."

FirstGroup plc half-yearly results to 30 September 2011

Ex-divi 4th Jan 2012 (7.62p)

Interim Management Statement.

INTERIM MANAGEMENT STATEMENT

FirstGroup plc ("the Group") reports the following update on trading during the
third quarter from 1 October to 31 December 2011 ("the period"). The Group
provided an update on trading as part of its half-yearly financial results
announcement on 9 November 2011. Since then overall trading for the Group
during the third quarter of the current financial year has been in line with
management's expectations.

FGP chart looks terrible, look as if the company is trading badly which it is not. Yield is approaching 8%. If it can stay above 300p for the next 5 or 6 days especially during down FTSE days then I intend to buy some. Certainly following the principle of buying low (hope to sell high!).

Yes it looks like £3 gone today.

Yes, looks like 300p has gone. From the longer term chart 250 -260p appears like the next stop. Hope its a stage from where this can rebound. Will look again if this drops any more, tempting divi and reasonable financial performance. H

290 now looking at risk.

New 12 month low hit today @281.30p

have picked some up at 284 for the divi

No one likes a bottom picker :-)

I'm keen to buy these again, but can't quite press the button atm.

Just had a small spread bet @283.21.

Am I missing something here? Within a whisper of the 12 month low again today - yield 7.83%

Transport company FirstGroup announced the £14 million sale of a London bus depot and operations yesterday to rival Go-Ahead Group.

The sale of the Northumberland Park depot in north-east London, with 130 vehicles on 13 routes and 400 employees, is part of the Aberdeen-based group’s announced strategy to sell assets it no longer regards as core.

300p proving resistance now. Looks like a double top, possibly targetting around 260p. I will wait a little longer before getting in here, although I think it's long overdue a big bounce. H

Trading Statement.

Just taken a small SB @239.

Will they cut the divi now.

Baylis - from the trading statement.

The Group has market leading positions and, while addressing the impact of the
current weak economic environment and trading conditions in certain markets in
which we operate, we are taking action that will strengthen our businesses for
the future. Therefore, the Board is committed to dividend growth of 7% in line
with our current commitment and is confident that the Group has good prospects
to deliver long-term value for shareholders in a sector which is a key enabler
of economic growth.

But who knows!

HL's lunchtime take on FirstGroup.

Despite the up market today, this has dropped, probably much too much. Nevertheless, it looks like testing old support at around 200p, from a chart point of view imho. I still think a big bounce is likely, but I will hold off 'getting on the bus' for a while yet. H

I'm out at break even (having been +10) - I'm not prepared to hold over the weekend until things become clearer.

£2 looking suspect - 2009 low was 192.90.

Uncrossed below £2. (198.50).

skin do you think it has reached bottom? If so may be worth a punt even if the dividend is reduced.

I closed my short yesterday on the bounce off of £2 and will re-enter on a significant break either way - I'm guessing it will be to the short side.

skin nice to know your view, everything depends on the final dividend which last year was 15p so if that is maintained or increased by 7% which is the boards stated intention then the downside looks limited at the current sp of around 200p.

Yes as posted on here (or the chart thread) they still maintain that the dividend will be covered, which gives a yield of 11.09% - a somewhat bizarre decision when considering their other problems.

Do you expect them to change their dividend policy based on the share price? now that would be bizarre...

sp bouncing back looking for 240p short term.

FirstGroup is in trouble - but it might be worth a punt

The market has fallen out with transport company FirstGroup (FGP).

A profit warning at the end of last month has shattered the confidence of many investors. With lots of debt, a weak UK bus division and the prospect of losing some or all of its rail franchises, the market seems to have made its mind up: FirstGroup’s juicy dividend is not sustainable. A big cut is on the cards.

Hmmm - I wasn't expecting a rise here - maybe due to oil prices?

preliminary results due 23rd May.

Final Results.

Overall trading for the Group in 2011/12 in line with our expectations; net
cash inflow of £119.2m

* First Student - now well set on path to recovery; plan delivering in line
with targets, stabilised operating margin in H2

* First Transit - continued good returns from low capital requirements and
established credentials

* Greyhound - business is now transformed, strong growth with operating
profit more than doubled over last 2 years

* UK Rail - solid performance; entering transition period for UK rail, only
operator shortlisted for all four of the current competitions

* UK Bus - steady performance during year; expect margins in 2012/13 to be
significantly affected by deteriorating economic conditions particularly in
the North of England and Scotland and reduced funding to the industry;
executing comprehensive plan to reposition the portfolio and restore
performance

* Dividend increase of 7.0% in line with current policy

Ex-divi wed 11th July '12 (16.05p)

Ex dividend tomorrow and down on an up day - doesn't bode well! Yield (at today's price) is 11.52%

I was convinced these would rise ahead of the divi, had a spurt to the 230p area just recently but all downhill since then, bit like HFD.
2517

The Stagecoach RNS won't have helped and it could be a bit of a blood bath tomorrow.

another fine mess!!

Extended auction - doesn't bode well.

Was having a serious look at this for the divi. Sooooooo glad I didn't dabble!

HARRYCAT, I had been doing the same, although I came unstuck with HFD I think it's still a strategy to consider. If you bought FGP yesterday at or near their closing price then you would be 1p or 2p to the good (atm) divi is 16.05p sp is down 14p ish. After a share goes ex divi and the sp drops, the PE reduces to a point where the share may be seen to be attractive again and buyers return, thus pushing the sp to the level they were prior to going ex div. Well that's the theory anyway.
2517

George - I think the perception here is that the dividend is likely to be cut.

I understand the theory, George, but on many an occasion recently there hasn't been a post ex-divi bounce (short term) and it is easy to be stuck with a capital loss even though you have got the divi.
Skinny, I am not sure many people would be buying post ex-divi ready for the next divi? I usually look about 1 month ahead and try and buy stock before the final surge to divi date, hence the BT.A & BG. posts, but the problem there is that august tends to be a dire month for stocks, so may have to sit on the shares for a month or so in order to sell at a profit and get the divi. Very tricky, imo and some stocks defy logic, like EXPN where I got the divi and the sp is still going up!

Harry - I think that (a cut) has been the perception for a while - hence I guess, the reason the share fell up to going ex dividend - which is why I didn't buy.

skinny, I agree the future divi looks suspect.

HC, that is the problem, knowing or being lucky enough to find the shares where the sp claws back the drop after going ex divi, or that continue to rise despite having gone ex divi.
2517

VOD & NG have both recovered the pre ex price quickly this time around and are both near or at 12 month highs.

Come on back baby.....up you come......225pwould be nice

up nearly 3% again today, come on you know you want too.,.

AGM Statement and Q1 IMS

At the current sp 215p ish, FGP are now a penny or two above the price prior to them going ex-divi, so could sell now without loss and have the 16.05p divi to come. Simples. So why didn't I do it.
2517

Yuo got in better than me geogre, 228p for me so am waiting a bit longer.,.

do i go or do i stay.............. decisions decisions.,.

BB - this is probably helping over the last couple of days - FirstGroup trumps Virgin as frontrunner for west coast rail franchise

glad i stayed, how far will it go is the next question.,.

238p in profit, must watch carefully through August when decision is made for franchise. Many thanks skinny for info.,.

Balerboy - you may find this interesting.


An increasingly bitter competition for control of the West Coast Main Line was branded a "shambles" yesterday as anticipation mounted that Virgin Trains could be shunted off Britain's railways. Louise Ellman, chairman of the Commons Transport Select Committee, has joined unions and industry experts in urging the Government to think carefully before handing a franchise to operate London-to-Glasgow trains to FirstGroup, a rival to Virgin. FirstGroup has offered to pay nearly £7bn in profits to the Government if it wins a 14-year contract to operate the line from December, when the existing franchise expires. Its bid is about £1bn higher than Virgin's offer but will involve deep cost-cutting, The Times says.

we don't know when in August the decision is to be made do we skinny?

Threat to Richard Branson’s train empire

Virgin’s presence on Britain’s rail network could be derailed as FirstGroup offers £1bn more for the West Coast franchise.

13th August is the day.

Thanks UB

look at this one go so glad i didn't bale out....... smug look on face .,.

Well done relaybob, so sorry I didn't get in after I flagged it up, I attribute that to my HFD experience. However my strategy to buy prior to going ex-div has worked well with FGP not quite so well with HFD, but improving as the sp rises.
2517

Monday will be the day, if they get the franchise might go to £3.,.

Virgin prepares for legal fight over West Coast line

Virgin Trains is preparing for a legal fight over its last remaining rail franchise, as ministers prepare to award the contract for the prestigious West Coast line to rival FirstGroup.

Sir Richard Branson's Virgin Trains will push for a judicial review if the Department for Transport awards the 14-year franchise to FirstGroup this week as expected, The Sunday Telegraph has learnt.

Virgin has been operating West Coast services between London and Scotland for 15 years through a joint venture with Stagecoach. However, insiders say Virgin Trains now faces an uncertain future, with one senior source warning: "It could be farewell to Virgin Trains."

FirstGroup is thought to have made what industry insiders describe as a "suicide" offer of £6.5bn-7bn to run the West Coast line, outbidding Virgin, its closest competitor for the franchise, by about £1bn.
Dutch train company, Abellio, and France's SNCF are believed to have bid close to, or below, the £5bn mark.

Thanks skinny. Is it a wait and see or take the money and run???

Virgin could lose rail franchise
Aug 12 2012

Sir Richard Branson could lose his West Coast rail franchise this week, with a transport union warning that the switch in ownership could mean higher fares, poorer services and job losses.
The Government is due to announce the winner of the bidding for a new West Coast franchise in the next few days.

It is thought that Sir Richard's company Virgin Trains has lost out to transport giant FirstGroup in the battle to operate the London to Scotland line on which tilting, high-speed Pendolino trains run.

The Government announcement comes as the rail industry comes to terms with the need to comply with cost-cutting recommendations made in a Whitehall-commissioned report by Sir Roy McNulty.

The RMT transport union is opposed to the McNulty views and very concerned about the West Coast situation.

RMT general secretary Bob Crow said: "Whoever wins the West Coast route next week, and all the signs point to FirstGroup, they should be left in no doubt that we will mount a massive industrial, political and public campaign to stop any attacks on our members' jobs and the services that they provide to the travelling public.

"From leaked figures it is clear that this franchise is being let on pure McNulty terms with a gold-plated, 12-year contract linked to massive cuts to jobs and passenger services and huge increases in fares as the winning bidder battles to extract every penny that they can in profit."

FGP have done really well since just before going ex-divi, putting on 40p+ and with the divi of 16p gives a 25% ish return quick time. Is this going to be a case of better to travel than arrive.
2517

From "This is Money"

Sir Richard Branson’s Virgin Rail Group is preparing to launch a legal fightback if, as expected, it is stripped of the lucrative West Coast rail franchise this week.
Virgin is resigned to losing the London to Glasgow franchise it has held for the past 15 years. The Department for Transport is expected to hand the franchise to transport company FirstGroup.

Several leaks have suggested that FirstGroup has bid between £6.5billion and £7billion for the 14-year contract, which would be as much as 20 per cent more than Virgin is understood to have tabled.


Sources close to Virgin said lawyers were examining points on which they might win a judicial review of the bidding process – including whether the evaluation has given enough weight to public service. The decision over the awarding of the franchise will be announced on Tuesday.

The two other contenders – Abellio of the Netherlands and the French Keolis/SNCF – are understood to be out of the bidding.

GS put FGP on conviction buy list with tp raised 20% to 360p. Hang on tight bb and skinny.
2517

Took my profit at 260p as safety shot. i reckon they'll stick with virgin.......better the devil you know ect ect.

Statement re Rail Franchise Award FIRSTGROUP WELCOMES AWARD OF INTERCITY WEST COAST RAIL FRANCHISE

Delivering benefits for passengers, value for taxpayers, opportunities for
employees and returns for shareholders

FirstGroup, the leading transport provider in the UK and North America, is
delighted to have been awarded the contract by the Department for Transport
("DfT") to operate the new InterCity West Coast rail franchise until 2026.

Just gone short @264

You think the good news is already in the price?

I'm not sure it is good news.

glad i took the 260p :)

Nice move BB.

Tim O'Toole, Chief Executive of First Group, was just on radio 4 - and he sounds like he lives up to his surname!

lol

"Tim O'Toole, Chief Executive of First Group, was just on radio 4 - and he sounds like he lives up to his surname!"

Yes Skinny, He did sound a bit of a "Gun Nutter from across the water".. sort of bloke! didn't he? -):

Well the travelling was certainly better than the arrival, good exit bb.
2517

Thank you 2517, makes a change for something to go right. Just need halfords to pick up a bit more now.,.

aarrrggghhh You promised not to mention them.
2517

I know the day isn't over, but that looks like a bearish engulfing candle!

Bearish engulfing candle!

Yes Skinny and with volume. Suggests the market believes FGP's bid was a suicide bid until proven otherwise. Heard on the news tonight FGP will have to grow that business at 10% per annum to make a return. Apparently they have identified spare capacity Virgin failed to spot. Branson failed to spot a money making opportunity?? I'll have to think about that!

Let us run West Coast for free, says Branson

Entrepreneur makes temporary offer to run the West Coast line for free to buy time for MPs’ inquiry into controversial decision to hand the franchise to FirstGroup.

Statement re InterCity West Coast Rail Franchise

We understand that Virgin Rail Ltd a subsidiary of Virgin Rail Group, the joint
venture between Virgin Group and Stagecoach Group plc, has brought a legal
challenge against the Department for Transport in relation to the recent award
of the InterCity West Coast rail franchise to FirstGroup.

We have every confidence in the DfT's process which is rigorous, detailed and
fair and in which bids are thoroughly tested. There has been no complaint about
the process, which was carefully described in advance, until Virgin Rail Group
had lost commercially.

Our plans for the new InterCity West Coast franchise include faster journeys,
new trains, more seats and more direct services from London than currently on
offer. There will be improved WiFi, better catering, refurbished stations and
Standard Anytime Fares will be reduced by 15% on average within the first two
years. We look forward to welcoming passengers to their new and exciting
InterCity West Coast service in December and creating a better railway for all.

Our focus is to ensure a smooth transition with continuity for staff and
passengers alike. We want to get on with delivering the many benefits and
improvements we are offering without delay or disruption. We will continue to
prepare for a successful start up of the new franchise on 9 December 2012.

Trading Statement

Commenting, Tim O'Toole, Chief Executive said:

"I am pleased to report overall trading for the first half of the year is in
line with our expectations. With a fundamentally strong and diverse portfolio
of operations we are focused on driving a greater performance and delivering
improved growth and returns. While there is significant work to do we are
satisfied with the progress of the actions we have taken, though we remain
mindful of the uncertain economic backdrop.

"We have leading positions in a sector that is a key enabler of economic growth
and we are confident that the actions we are taking will strengthen the
business for the future. Therefore, reflecting its longer term view, the Board
remains committed to its current policy of dividend growth of 7.0% through to
the end of the financial year 2012/13."

This should put the cat amongst the pigeons today :-

Government scraps $9 billion West Coast rail deal

LONDON | Wed Oct 3, 2012 5:10am BST

(Reuters) - Britain scrapped on Wednesday a $9 billion (5.5 billion pounds) deal that had awarded the West Coast rail line to FirstGroup Plc, citing flaws in the government's figures, just a day after the company had said it was prepared to take over the key mainline train service this year.

FirstGroup in August won the 13-year deal for the London-to-Scotland line with a bid of around 6 billion pounds, but the decision was challenged by Virgin Trains, a joint venture between high-profile billionaire Richard Branson's Virgin Group and Stagecoach.

Statement re: InterCity West Coast Franchise Award

Personally think this is a blessing in disguise

Joe - yes its ironic!

FirstGroup runs a number of bus and rail services across the UK.

Shares in FirstGroup fell recently on the news that it might lose the West Coast rail franchise (it was expected to start running the franchise in December). For this reason, forecasts on FirstGroup's future profitability are not reliable.

It appears, however, that this possible loss is no fault of FirstGroup's. The question for investors is what FirstGroup's long-term profitability will be without the West Coast operations.

Looking back, FirstGroup delivered an operating profit of £448m for 2012. This translated to 31.2p of earnings per share (eps) and a dividend of 23.7p. That equals a historic price-to-earnings (P/E) ratio and yield of 7.8 and 9.8% respectively.

Debts at FirstGroup are high in relation to the company's market cap. However, this type of business typically delivers reliable cash flows and faces little competition. The recent kerfuffle may be an excellent opportunity to grab a high-yielding transport operator at a temporarily depressed price.

Already grabbed and waiting.,,.

West Coast Main Line: Taxpayers 'at risk' in rail bid

All bidders for the West Coast rail franchise were offering too little protection to protect taxpayers against potential losses, the BBC has learned.

The BBC's Robert Peston says that the "entire bidding process was flawed".

Taxpayers would therefore have been exposed to potential losses, he added.

Place your bets.

Virgin to run West Coast route 'for at least nine months'

We know what has hit FirstGroup of late -- the cancellation of its new West Coast Main Line contract after the bidding process was scrapped. The shares have been trading very close to their 52-week low of 184p this week, though they're up a bit at 190p today. Is the depressed price fair, or are the shares oversold?

Well, the company must be worth at least what it was before the rail franchise fiasco, mustn't it? Current forecasts put the shares on a prospective P/E of only 6.3, with a massive 13% dividend yield forecast for the year to March 2013. However, that payment would barely be covered by earnings and there must be a good chance the forecasts are optimistic. Still, with a valuation so low, there is room for a significant dividend cut and the income yield remaining attractive.

We have interim figures from FirstGroup due on Wednesday. FirstGroup's shares plunged when its newly won West Coast rail franchise was cancelled at the beginning of last month due to irregularities in the handling of the bids by the Department of Transport . Since then, the price has picked up a little to 206p, but it's still around 40% down on the year.

At the time of FirstGroup's last trading update, things were in line with expectations, but that was the day before the franchise news broke. Forecasts suggest a full-year dividend of 12%, but that's looking very uncertain. And there's a lot of debt on the books. But with the shares on a P/E of under 7, we could have a nice recovery prospect on our hands.

Already in and waiting, keep going!!!

Half-yearly Report


Overview:

* Overall Group trading during the first half of the year is in line with our
expectations, despite continued economic uncertainty. As previously
indicated, the results reflect the anticipated reductions in operating
profit for UK Bus, where we are taking action to reposition the business
and restore growth, and in UK Rail as a result of the transition to the
three year extension period in First TransPennine Express.

* We are focused on our goals of improved performance and sustainable growth
across the Group and are confident that our actions will create a stronger
business for the future. While there is still more to do, we are pleased
with the progress of the actions we have taken so far.

* The Department for Transport (DfT) has cancelled the InterCity West Coast
competition, in which FirstGroup had been chosen as the winning bidder, and
has paused the current rail franchise competitions. As a result of the
uncertainty this creates, the Board has decided to hold the interim
dividend at last year's level, and will consider the appropriate level for
the full year dividend in May 2013. By that time, the prospects for our UK
Rail division are expected to be clearer, following independent reviews
into the cancellation of the West Coast competition and the future of
franchising.

* As the UK's largest and most successful rail operator, we remain committed
to maintaining our leading position in the rail market and are actively
engaging with the ongoing reviews to help shape the future of franchising.

Operating highlights:

* First Student - progress from a more efficient operating model that we have
established.

* First Transit - continued steady growth across all core segments with a
healthy pipeline of business.

* Greyhound - a transformed business with attractive new products such as
Greyhound Express. The highly flexible operating model we have created is
mitigating the effects of a sluggish economic environment.

* UK Bus - progressing our extensive programme to reposition the business and
create a firmer footing to deliver sustainable growth. We remain confident
in our plans and encouraged by positive early signs in some of our markets.

* UK Rail - strong growth across all of our rail franchises and high levels
of performance > 90% punctuality and reliability.

A couple of big gaps here.

SP will learn to jump, lol..... in profit now.

Ex Div date wednesday. 7.6p

Interim Management Statement

FirstGroup plc ("the Group") the leading transport operator in the UK and North
America, reports the following update on trading from 1 October to 31 December
2012 ("the period" or "the third quarter").

Overview

Trading for the Group, excluding the one-off effect of Hurricane Sandy, during
the third quarter was in line with our expectations. Despite the economic
conditions that prevail, we continue to strengthen the business for the future
by taking actions that will lead to improved performance and sustainable
growth.

We were pleased by continued strong support from fixed income investors in
November, which led to our issue of £325m of 10-year bonds being significantly
oversubscribed. The proceeds were used to pay down debt, as part of our
strategy to reduce reliance on bank borrowings and extend our debt maturity
profile.

First Student

The roll out of management actions across the business continues to underpin
performance and strengthen the operating model of First Student. Although there
is significant work still to be done, we remain on track with our plans and the
business is set on the path to recovery. A significant amount of our operations
were disrupted by Hurricane Sandy in late October. The storm, which affected
the entire eastern seaboard, parts of the Midwest and Eastern Canada, impacted
some 130 of our locations and led to the closure of schools for up to nine
days. This is expected to adversely impact operating profit by approximately
$15m in 2012/13. Nevertheless, our current expectations for underlying margin
performance for the full year remain broadly unchanged.

First Transit

Our transit division generated good operating results from its range of
operations, the majority of which require low capital investment. A strong
performance was achieved with good revenue growth particularly within our core
operations. We continue to see good contract retention rates and develop
opportunities from a healthy pipeline of new contract bids. We are proactively
working through a small number of historic legal claims within First Transit.
As a result, settlement discussions have now been scheduled for February 2013
in respect of historic meal and rest break claims in the Fixed Route and
Paratransit businesses which date back to 2003.

Greyhound

During the period like-for-like revenue growth was 1.6%, with Greyhound's US
operations continuing to achieve a strong performance. Against the backdrop of
a sluggish economy, operating margin performance remains in line with our
expectations as a result of the actions we have taken. These actions have
transformed the business and created a more flexible and agile operating model.
We continue to expand our popular Express product and build on the unique
strength of our national network in providing support for sustainable flows on
newly launched services as we roll out across more destinations. During the
period we expanded Express service to new states including Louisiana, Oklahoma,
Nevada and Ontario, Canada.

UK Bus

Like-for-like passenger revenue growth was 2.1% in the period. Notwithstanding
the challenging economic environment which continues to affect many of the
urban areas in which we operate, we are making headway with our detailed plan
to recover performance and equip the business to achieve increased revenue and
patronage growth. We continue to work through our programme of disposals. In
November 2012 we agreed the sale of our Birkenhead and Chester operations for £
4.5m and today we are pleased to announce the sale of our Kidderminster and
Redditch bus businesses to Rotala PLC for a gross consideration of £1.5m. While
there remains considerable work to be done across our UK Bus division, we are
encouraged by early positive signs in some of our markets. As previously
stated, we expect UK Bus operating margin to be approximately 8% for the full
year.

UK Rail
Our rail division continues to benefit from strong passenger growth across all
of our franchises and like-for-like revenue increased by 8.1% in the period. We
welcomed the publication of the independent review by Richard Brown on 10
January which called for an early return to refranchising so that the private
sector can continue to provide effective and efficient passenger rail services
with further performance and infrastructure improvements. As the UK's largest
and most experienced rail operator, we remain committed to maintaining a
leading position in the market. We look forward to receiving details on the
recommencement of the franchise process and submitting further high quality
bids that deliver for passengers, taxpayers and shareholders. During the period
the Scottish Government announced that the ScotRail franchise will now end on
31 March 2015, from its previous end date of 9 November 2014.

Trading Statement

PRE-CLOSE TRADING UPDATE

FirstGroup plc ("the Group") reports the following update on trading for its
financial year ended 31 March 2013 ("the year" or "the period"), ahead of its
preliminary results due to be announced on 22 May 2013.

Summary

* Overall trading in line with management's expectations

* Sale of eight UK Bus depots in London for a combined consideration of
approximately £80m after the period

* Recovery programmes in First Student and UK Bus on track

* First Transit achieved strong contract performance and sale of Support
Services, consistent with strategy to focus on core businesses

* Greyhound Express continues to expand, offsetting the impact of the weaker
economy

* Continued strong passenger volume and revenue growth in UK Rail

Investec has retained its 'hold' rating and 200p target price for transport firm FirstGroup after the firm's pre-closing trading update which showed that trading was broadly in line during the fourth quarter.

Investec analyst John Lawson said: "The turnaround of FirstGroup is a slow process and, despite the planned sale of the London bus business, debt remains high and the future DPS [dividend per share] is still unclear (at present, we forecast an unchanged DPS, but this could change in May when the board makes a formal decision). The underlying trading trends look mixed (some OK, some less good), so not too much to get excited about here."

came out earier at small profit at 211p should have taken 217 when it was there.,.

StockMarketWire.com
FirstGroup has launched a fully underwritten three-for-two rights issue to raise £615m.

The issue price of 85p per new ordinary share represents a discount of 62.0% to the closing price on Friday (17 May) and a 39.5% discount to the theoretical ex-rights price.

The proceeds of the rights issue will be used for continued investment in the business and to reduce the group's net indebtedness by paying down borrowings under the group's bank facilities.

One for the brave.

one for the very brave!

Admission of Nil Paid Rights

The Company announces that, pursuant to the Rights Issue announced on 22 May 2013, 722,859,586 New Ordinary Shares of 5 pence each will be admitted to listing on the premium listing segment of the Official List of the UKLA and will be admitted, nil paid, to trading on the London Stock Exchange's main market for listed securities at 8.00 a.m. today.

Investec has upgraded its rating for transport firm FirstGroup from 'hold' to 'add', saying that it is on the verge of becoming an interesting equity investment again.

"Whilst clarity on the rights issue take-up is not expected until the end of the month (dealings in the new shares start on June 26th), a properly funded group with cash generative activities should be a more attractive investment," said analyst John Lawson. He said that the group will shortly be putting its balance-sheet issues to bed.

On the grey market, the new shares have ranged between 18.25 - 25.00p this morning.

down to 99p but if you buy on the low, how long before you get some return..... could be sometime.,.

result of rights issue due tomorrow will their sp sink or swim....... gurgle,gurgle!

Neither, just treading water.

Nice jump today, start of a rerating or maybe some good news in the wind? Anyway 120p looks likely in the near term with possibly 180p as a longer term target imho. I am back in profit and looking to add on any pullback, might happen tomorrow after today's rise. H

http://www.dailymail.co.uk/money/markets/article-2387280/MARKET-REPORT-FirstGroup-track-deal.html

Rumors of a unidentified possible bidder, explains the rise yesterday. SP could collapse back down if no basis for rumor comes to light. Any thoughts whether to buy or not? H

Trading Statement 23 Jan.

Investec Buy 133.05 130.50 127.00 160.00 Upgrades

Looking promising.

Director Declaration

JOHN MCFARLANE, CHAIRMAN, TO RECEIVE ALL FEES IN SHARES


As announced on 6 December 2013, John McFarlane became Chairman of FirstGroup
plc on 1 January 2014.

John will receive an annual fee of £250,000 in respect of his role as Chairman
and has elected to receive all of that fee in FirstGroup shares, underlining
his confidence in the long-term prospects of the Company and aligning himself
closely with the interests of shareholders.

He has committed to hold those shares for as long as he remains Chairman or
otherwise a Director of the Company.

Interim Management Statement

Summary

• Overall trading in line with management's expectations, with good performance
in four divisions offset by slower progress in First Student

• First Student - recovery plan helping to mitigate tough market conditions,
medium term targets unchanged

• Continued strong performance in First Transit

• Greyhound - focus on cost management ensures margin performance remains on
course. Successful expansion of Greyhound Express continues

• UK Bus - transformation plan is on track, with positive signs from local
market growth initiatives

• UK Rail - continues to deliver solid passenger revenue and volume growth
across all our franchises


more...

Statement re Shortlist for East Coast franchise

FirstGroup has been shortlisted for the InterCity East Coast franchise
competition by the Department for Transport.

Commenting, Vernon Barker, FirstGroup's Managing Director, UK Rail said:

"We are delighted to have been shortlisted for the InterCity East Coast
franchise competition.

"We have extensive experience of intercity services and have a strong track
record in delivering passenger growth as well as capacity and infrastructure
upgrades on the long distance franchises we run - First Great Western, First
ScotRail and First TransPennine Express. We look forward to reviewing the
contract details and submitting an innovative, compelling, and value for money
bid which meets the needs of taxpayers as well as customers and businesses
along the East Coast route."

RNS directors under pressure should be some action here soon.

Final Results

Group overview:

* Overall trading in line with expectations for the year, excluding the £14m
operating profit impact of unprecedented weather conditions on First
Student and Greyhound in the fourth quarter

* Adjusted operating profit increased by 5.5%, reflecting improved underlying
operating performances in four divisions, partially offset by slower
progress in First Student and the extreme weather

* Adjusted EPS fell 31.8% due to the dilutive effect of the rights issue
completed in June 2013

* Statutory operating profit and EPS substantially improved

* Net cash flow broadly flat for the year (excluding the proceeds of the
rights issue), in line with expectations

* Balance sheet strengthened, net debt: EBITDA ratio reduced to 2.2 times
from 3.4 times last year and new £800m five-year revolving credit facility
signed

* Disciplined investment programme underway, with gross capital expenditure
increasing by 15% in the period

* ROCE increased to 8.2% (2013: 7.0%) in line with expectations. Medium term
10-12% ROCE target and other financial targets maintained

* Dividend - taking together the current stage of the turnaround programmes
and our commitment to our capital programme, the Board has decided to
refrain from reinstating a dividend at this point

* Board changes - including the appointment of three new non-executive
directors with effect from 24 June 2014

Directorate Change

Plop!

Trading Statement

Statement re ScotRail franchise

StockMarketWire.com
FirstGroup is 'dis-satisfied' after failing to secure any of the rail franchises that have come up for tender in the first round.

This follows the Department for Transport's announcement today that the group had failed to win the new InterCity East Coast franchise.

FirstGroup chief executive Tim O'Toole said: "Our bid for the East Coast franchise was ambitious yet realistic. Had it been selected, it would have created a world class railway for passengers and value for taxpayers with a balanced level of risk and returns for shareholders.

"As one of the UK's most experienced operators, we remain committed to the rail market but we are dissatisfied not to have secured any of the franchises that have come up for tender in this first round.

"Whilst we will retain a disciplined approach to bidding, we will continue to examine and assess the feedback from this and previous rail bids to help shape our approach to future competitions.

"We are shortlisted to run the next TransPennine Express franchise, and are negotiating with the DfT to extend our current operation of that route to February 2016. We are also negotiating with the DfT for a direct award to operate First Great Western, our largest franchise, through to at least March 2019.

"There are 12 franchise competitions still to take place and we remain focused on reaching our desired position in rail by the end of the process, which is to achieve earnings on a par with the previous franchising cycle at an acceptable level of risk and return."

"World class railway"!!!!

On the Western they are for ever tarting up the carriages, and no doubt for the sake of economy the trains are too often unheated - as travellers in the colder spells are only too well aware.................

Presumably the one pays for the other.........

StockMarketWire.com
FirstGroup says overall trading is in line with management's expectations, and its transformation plans continue to make progress.

* First Student: recovery plan on track, with improved pricing achieved in recent bid season and cost efficiencies * First Transit: revenue expectations benefitting from organic growth on existing contracts * Greyhound: demand adversely affected by sharply lower fuel prices over the key holiday period * UK Bus: continued volume growth and progress with cost savings, with increases in yield starting to contribute * UK Rail: robust volume and revenue growth, with financial performance towards the top end of our expectations

Chief executive Tim O'Toole said: "Overall trading for the group is in line with our expectations. Our First Student and UK Bus transformation plans are on track and both divisions are delivering the expected improvements in financial performance.

"Demand for Greyhound services over the important holiday period was adversely affected by the significant and rapid reduction in fuel prices, which makes car travel more affordable and competitive with our services. This was offset by good performances in First Transit and our UK Rail operations, which are both achieving growth towards the top of our expectations with robust margins.

"Overall we are on course to meet our full year expectations for the Group, and we are confident that our multi-year plans will deliver improved cash generation and create sustainable value over the medium term."

StockMarketWire.com
FirstGroup's transPennine rail franchise has been extended for a further year.

The group says this deal means that the First TransPennine Express franchise will operate beyond its current end date of 31 March 2015 to 1 April 2016.

This date is coterminous with the Government's anticipated start for the new TransPennine Express franchise.

The group is shortlisted and looks forward to submitting a bid later in the year to deliver significant improvements for customers and value for money for taxpayers.

FirstGroup says today's award secures continuity of rail services for passengers over the next year and during this period First TransPennine Express will continue to progress areas which passengers have identified as important such as the installation of free Wi-Fi to key stations across the route and an enhanced programme of customer service training.

Chief executive Tim O'Toole said: "We have an excellent track record at First TransPennine Express, which provides vital connections between key cities in the North of England and Scotland. Since the franchise began, our experienced team have worked hard to introduce brand new trains, refurbished stations, increased frequency and improved journey times. As a result the service is more popular than ever, now carrying 26 million passengers a year compared to 13 million in 2004.

"Today's agreement with the Department for Transport provides continuity and consistency for First TransPennine Express passengers over the next year, as we focus on continuing to deliver great customer service and introducing improvements ahead of submitting our bid for the new franchise later in the spring."

StockMarketWire.com
FirstGroup's underlying revenue increased by 4.1% in the year to the end of March but reported revenue decreased due to rail franchise changes and non-recurrence of revenues from UK Bus operations.

Overall trading for the group was in line with management's expectations.

Reported group revenue decreased by 9.9% in the year to £6,050.7m (2014: £6,717.4m), principally reflecting UK Rail franchise changes, non-recurring revenues from UK Bus operations sold or closed in the prior year and foreign exchange translation.

Excluding these items, revenue increased by 4.1%.

Adjusted group margin increased to 5.0% (2014: 4.0%). The US dollar margin of our largest division First Student improved by 1.0%, reflecting the successful outcome of the first year of our new contract bidding strategy and no repeat of the exceptionally severe winter weather conditions in the prior year.

The UK Bus margin also improved by 1.0% as a result of continued progress in our turnaround programme. During the second half of the year Greyhound margins deteriorated due to the adverse effect on customer demand from sharply lower fuel prices, closing the year at 6.9% (2014: 7.4%).

UK Rail profitability improved significantly, reflecting good passenger revenue growth and First Great Western moving to normal commercial terms part way through last year. Group adjusted operating profit increased by 13.3% to £303.6m (2014: £268.0m).

Adjusted profit attributable to ordinary shareholders increased by 48.2% to £117.5m (2014: £79.3m), due to higher adjusted operating profit and lower net finance costs.

Adjusted EPS increased by a lower percentage to 9.8p (2014: 7.5p), due to the increased weighted average number of shares in issue following the rights issue completed in the prior year. Adjusted EBITDA increased 7.7% to £624.4m (2014: £579.8m). Statutory operating profit was £ 245.8m (2014: £232.2m), reflecting the higher adjusted operating profit partly offset by the gain on disposal of London operations in UK Bus last year.

The net debt:EBITDA ratio was 2.25 times (2014: 2.25 times), in part reflecting the UK Rail end of franchise cash outflows in the year and foreign exchange translation. ROCE was 7.8%, or 8.5% (2014: 8.2%) at constant exchange rates.

Chief executive Tim O'Toole said: "Overall trading for the year is in line with our expectations and our transformation plan is beginning to deliver improving financial performance, though clearly much hard work remains ahead of us.

"The pricing improvements we made in the 2014 bid season together with further cost savings mean we have made solid margin progress in First Student for the year, and we are also encouraged by the results achieved at this stage in the 2015 bid season. In UK Bus we continue to deliver passenger volume growth, positive yield and further cost efficiencies from our locally focused turnaround actions. Greyhound has flexed mileage, timetables and pricing in response to the rapid reduction in passenger demand from lower fuel prices, and is on track with the yield management upgrade programme. Our First Transit and UK Rail businesses maintained good growth momentum and margins.

"We intend to deliver further progress from our multi-year transformation plans in our 2015/16 financial year. We currently anticipate strong progression in our non-rail businesses, driven mainly by the ongoing turnarounds of First Student and UK Bus, to largely offset the substantially lower contribution from UK Rail as a result of the end of the First ScotRail and First Capital Connect franchises.

"We were awarded a contract to operate First Great Western for up to four and a half more years, and will continue to work closely with the Department for Transport and Network Rail to deliver the £7.5bn Great Western Mainline modernisation programme to at least March 2019. We have also signed an agreement to run First TransPennine Express through to 1 April 2016, and recently submitted our bid to operate the franchise beyond that date.

"Wolfhart Hauser joined the Board of FirstGroup in May and will become Chairman following our AGM in July. Wolfhart's track record of sustained value creation and his experience and counsel will be invaluable as we continue to drive forward the transformation of the Group.

"Our improved financial performance this year demonstrates that our multi-year transformation programme is making progress, though we must maintain the momentum of change to meet our medium term financial targets. Accordingly we will continue to work hard to deliver the considerable potential of the Group and return to a consistent profile of cash generation and sustainable value creation."

StockMarketWire.com
FirstGroup, a leading transport operator in the UK and North America, has reported that overall trading for the Group during the first half was in line with our expectations in the first half of its financial year to 30 September 2015.

In its different sectors it commented:
** First Student: second year of enhanced contract pricing strategy delivered as planned; cost efficiency plans on track.

** First Transit: further contract awards in rest of business offset by reduced Canadian oil sands activity.

** Greyhound: yield management project on track; flexing cost base to help mitigate reduced demand from cheaper fuel.

** UK Bus: commercial revenue growth and cost efficiencies from transformation partially offset by lower concession revenues.

** UK Rail: strong passenger revenue growth and financial performance.

Chief executive, Tim O'Toole, said: "We continue to progress our transformation plans which will drive sustainable improvements in the financial performance and cash generation of the Group, despite a more challenging trading environment in some of our markets in the period."

StockMarketWire.com
FirstGroup's revenues in the third quarter fell by 9.5% on a constant currency basis, principally reflecting changes to the rail franchise portfolio, and the number of First Student operating days due to the timing of school calendar.

Excluding these previously announced effects, group revenues increased by 0.9% in constant currency in the period.

The group said continued progress of the transformation plans in the third quarter was mitigated by a challenging trading environment:

- First Bus revenues affected by lower than forecast high street retail footfall with exceptionally wet weather and flooding in some markets

- First Student experienced higher costs related to acute driver shortages in certain locations as a result of the tightening US employment market.

Management's outlook for operating profit in the current financial year is slightly lowered by trading in the period

But the group is confident that the transformation plans continue to improve underlying performance and will drive sustainable cash generation over the medium term as planned.

The group was awarded TransPennine Express rail franchise in December, increasing duration of First Rail portfolio to at least 2023

StockMarketWire.com
FirstGroup's underlying revenue was broadly flat at £5,218.1m in the year to the end of March, while reported revenue decreased by 13.8% mainly due to changes in the rail franchise portfolio.

Group adjusted operating profit at £300.7 was, however, comparable to the prior year, benefiting from cost efficiencies in First Student and First Bus and a good performance from First Rail, though the group was disappointed that costs associated with driver shortages in First Student did not allow it to report more progress this year.

Adjusted EPS increased by 5.1% and net cash inflow for the year (before end of rail franchise outflows) was £36.0m, which is expected to increase going forwards.

Statutory operating profit increased by 0.2% to £246.3m and EPS rose by 21.0% to 7.5p.

Chief executive Tim O'Toole said: "Overall we have made encouraging progress this year toward a profile of more consistent financial returns for the Group. As we indicated at the start of the year, a smaller rail franchise portfolio and fewer operating days in our school bus business were factors that would make delivering headline growth this year challenging. However, by being flexible with our plans we have delivered a comparable adjusted operating profit to last year and a net cash inflow ahead of our expectations.

"The Group expects to make strong progress in the year ahead despite a challenging trading environment in several of our markets. This will come from our continued focus on disciplined contract bidding and rigorous cost efficiency programmes, as well as lower fuel costs and more First Student operating days compared with the year just ended. Following several years of reinvestment we expect to deliver a significant increase in net cash generation. Overall, we expect the considerable efforts of our people in recent years to be reflected in a significant improvement in our profile of sustainable returns and cash generation going forward."

JP Morgan Cazenove today reaffirms its overweight investment rating on FirstGroup PLC (LON:FGP) and cut its price target to 141p (from 153p).

Statement re: South Western rail franchise competition
FirstGroup is pleased to announce that MTR Corporation (UK) will join the Group in a joint venture to bid for the South Western rail franchise, following the assent of the Department for Transport.

Commenting, Steve Montgomery, First Rail Managing Director said:
"We are pleased that we will be partnering with MTR in a joint venture to bid for the South Western rail franchise, for which we were shortlisted in February 2016. We have extensive expertise of running commuter, inter-urban, regional and long distance services such as those that make up the South Western franchise and a strong track record in delivering passenger growth. MTR run successful suburban and commuter railways; their knowledge from running London Overground and TfL Rail on behalf of Transport for London will add further depth and understanding to an important component of this franchise.

"Together, FirstGroup and MTR will develop an innovative and value for money proposal that will deliver better connectivity and significant improvements for South Western customers. Our bid will keep people moving and communities prospering across the region."

StockMarketWire.com
FirstGroup's revenues rose by 5.1% to £2,564.7m in the six months to the end of September.

Adjusted operating profits were up 0.7% at £89.0m but adjusted pre-tax profits fell 2.2% to £21.9m.

On a statutory basis, operating profits rose to £77.9m from £58.5m and there was a pre-tax profit of £11.1m compared with a loss of £7.5m last time.

Chief executive Tim O'Toole said: "Our overall trading performance as outlined at the start of the financial year continued during the first half, with encouraging performances by our North American business partially offset by tough trading conditions for our UK bus and rail operations. In the second half we will benefit from our normal seasonal bias as well as our ongoing focus on executing our strategy.

"We continue to expect good progress for the Group in the current year, recognising we will likely benefit from currency tailwinds from our substantial North American operations but will also face uncertain economic conditions in the UK for the foreseeable future. Our cash performance in the first half affirms our confidence in generating significantly increased cash flow for the full year."

He added: "I am shocked and saddened by the incident on Tramlink last week. On behalf of everyone at FirstGroup I would like to express our condolences to the bereaved families and friends and to those injured in this incident. We are working with Transport for London and the authorities to provide assistance in any way possible to those who have been affected and to the ongoing investigation. "

RBC Capital Markets today reaffirms its underperform investment rating on FirstGroup PLC (LON:FGP) and raised its price target to 125p (from 90p).

StockMarketWire.com
FirstGroup saw a significant improvement in operating results in the year to the end of March with substantial cash generation delivered as planned.

Group revenue rose by 8.3% to £5,653.3m and adjusted operating profit was up 12.7% at £339.0m, driven by First Student and First Transit and favourable currency translation.

Adjusted pre-tax profits were up 23% at £207.0m.

In constant currency, group revenue was down 0.5% and adjusted operating profits were up 2.3%.

Statutory operating profit increased by 15.1% and statutory EPS increased by 24.0%, with gains on disposal of a Greyhound property largely offset by reorganisation and restructuring costs and pre-tax profits were up 34.4% at £152.6m.

Chief Executive Tim O'Toole said: "We report our results today against the backdrop of the derailment of a tram operated by one of our subsidiaries on behalf of Transport for London in Croydon on 9 November 2016, a tragedy that has shocked and saddened us all.

"We are profoundly sorry that such an incident could take place aboard a service we operate.

"We are focused on understanding the exact cause of this incident and will continue to provide our full support to the ongoing investigations.

"Our thoughts remain with the families and friends grieving for the seven people who lost their lives, and those who were injured and affected by this terrible event.

"We are encouraged by this year's improved financial results, with our largest division First Student delivering a significant margin improvement despite continued driver recruitment challenges, while our First Bus and First Rail operations have faced more challenging market conditions this year.

"Through rigorous focus on sustainable operational and capital efficiencies, we were also able to generate substantially improved net cash inflow of £147m.

"In the year we have maintained our consistent and disciplined approach to bidding for future business throughout the Group, with the recent award of the South Western rail franchise being a good example of our focus on the service quality improvements our customers and communities tell us they want.

"Meanwhile, we continue to increase our use of technology across the Group to make it easier for passengers to use our services, and to deepen our understanding of our customers evolving needs. "Looking ahead, our financial objectives are to make further progress while maintaining our focus on cash generation, despite the mixed trading environment in our markets.

"Overall this year's results demonstrate the progress we have made in repositioning FirstGroup to deliver for our customers while creating value for our shareholders, commensurate with our leading market positions and scale."

Taken a bit of a slapping in early deals, down 6.5%.

Canaccord comment today:
"Full year results for the year to 31 March 2017 were better than expected, primarily due to better performances in North America. Net cash inflow was £147m (£36m before franchise outflows). The share price has risen strongly in recent months, up 22% since it announced the South Western rail franchise win on 25 March and supported by a stronger dollar. The company, however, continues to carry a significant debt burden and cash inflows are expected to be held back by the need for ongoing pension payments in excess of P&L charges (£38m in 2017 and could rise going forward). With a dividend reinstatement likely for 2018 and beyond, the ability to make bolt-on acquisitions in North America in order to supplement contract losses appears relatively restricted if the company aims to reduce debt levels materially.

Profit expectations for UK Bus, Transit and Greyhound remain sluggish in the near term and First Student profit growth is likely to decelerate as margins approach 10% and the ability to achieve further contract price increases diminishes (First Student accounted for 44% of group operating profit in 2017). UK Rail should clearly benefit from the SWT franchise win, although underlying market conditions in UK rail remain challenging. The shares are trading at a prospective P/E of 11.6x, a 24% premium to its 5 year historical average."

Liberum Capital today reaffirms its buy investment rating on FirstGroup PLC (LON:FGP) and raised its price target to 165p (from 150p).

StockMarketWire.com
Firstgroup reported revenue growth across most its divisions but Greyhound like-for-like revenues declined weighed by airline competition.

The company said all three of its North American divisions encountered extremely challenging weather conditions in January, and added that its outlook for adjusted EPS fell.

The company also said that its bond refinancing was underway with $275m raised in US private placement market, and added that it expects its September 2018 bond to be redeemed before financial year end which could bring approximately £14m in interest savings from next year.

The company reported revenue growth in its First Student division while Greyhound and First Transit came under pressure during the period.

First Student's revenue rise 0.3% in the period amid price increases introduced during last summer' bid season, but this was partially offset by the school days cancelled due to the severe snowstorms in early January.

First Transit's revenue fell 0.1% in the period following further reductions in service volumes in the Canadian oil sands region.

Greyhound's like-for-like revenue declined by 2.8% in the period, as strong growth in the shorter point-to-point markets was more than offset by intensifying challenges in the larger long-haul segment amid low-cost airline competition

First Bus delivered like-for-like passenger revenue growth of 1.4% with like-for-like passenger volumes rising 0.1% in the period.

First Rail's like-for-like passenger revenue growth was 3.2% in the period.

The group said it expects US tax changes to reduce its effective tax rate to mid-20's percentage.

FirstGroup Chief Executive Tim O'Toole said: 'We reached an important milestone in the period with our long-dated bond portfolio beginning to mature, allowing us to significantly reduce our interest burden by starting to refinance and rebalance the Group's debt.'

'We are pleased by the support shown in the credit market for our improved financial profile and disciplined strategy.'

'In the period First Bus has made encouraging margin progress as we benefit from our cost efficiency actions and revenue growth, while our First Rail franchise portfolio continues to generate value for the group despite infrastructure challenges'

'First Student's momentum continues to be tempered by the strength of the US employment market, with no easing of the driver shortages experienced in recent years, while First Transit has taken a number of actions to help restore margins in the second half as planned. Although Greyhound's point-to-point business continues to grow, this was more than offset by significant reductions in long-haul volumes in the period.'

StockMarketWire.com
Shares of rail and bus operator FirstGroup slumped on Tuesday after buyout firm Apollo said it would not make an improved bid after its advances were rejected last month.

FirstGroup revealed last month it had rejected an offer from Apollo, which it claimed 'fundamentally undervalues' the company.

Jefferies comment:
"We thought the combination of already high group debt, pension liabilities, two new rail franchises (SWR and TPE) won on full growth assumptions and the shrink-to-grow strategy nearing completion at Student (the group’s growth driver for many years) would all challenge a bid for FGP. The UK political dimension too would also have raised the risks. Additionally, we feel UK Rail needs to sit within larger groups to absorb downside scenarios should these contracts prove to develop into liabilities rather than the asset hoped for at bid. This would have frustrated any break-up scenarios worked through, alongside the long dated nature of the group’s debt. Splitting up FGP into US and UK holdings, for example, would leave rail sitting alongside a weak bus unit (how to allocate debt to that?) and unless a larger group could be found as a trade buyer (we think unlikely), it's not obvious to us that this represents an attractive standalone proposition.
Investors may hope that the experience of the Apollo interest will drive new impetus for change at FirstGroup. However, after years of current management struggling to turn this group around, it’s difficult to see what more they (or indeed others) can do. FirstGroup’s problems, in our view, stem all the way back to its pursuit of scale at the expense of its core (under-investment in UK Bus) culminating in the Laidlaw acquisition (2007) which has ultimately burdened it with too much debt. Market conditions have not been kind to it (its diversified exposures have seen headwinds roll through different parts of the group at different points). Perhaps, like Student, margin opportunities in both UK bus and Greyhound could be more aggressively pursued though shrink-to-grow-strategies, but there’s implication for scale there and FGP must remain mindful of its debt levels. Our sense remains that the recovery prospect at FGP is likely to remain a slow burn long term scenario, and reducing net debt should be the priority for cash generation (rather than dividend hopes that seem to have formed in some segments of the market)."

StockMarketWire.com
FirstGroup said Thursday that CEO Tim O'Toole resigned from his position as CEO as the company revealed its annual results showing adjusted profit before tax fell 4.8% to £197m for the year to the end of March despite a 13.2% jump in revenue.

Adjusted operating profit fell 10.4% excluding SWR and 53rd week.

The firm blamed the poor performance on Greyhound long haul challenges, severe weather effects on both sides of the Atlantic in the final quarter and ongoing US driver shortages. This was partially offset by good performances in UK divisions, the company said.

Greyhound like-for-like revenue fell 0.7%, as 7.7% growth in express (short haul) growth was insufficient to offset long haul demand challenges from intensifying airline competition, which saw the adjusted margin fall to 3.6%

'In the year, our largest division First Student was broadly stable and First Bus took an encouraging step forward in its margin improvement plans,' the company said.

'This was offset by the cost challenges experienced by First Transit in the first half and by Greyhounds inability to overcome the structural shift taking place in its long haul markets, as ultra low cost airlines significantly increase capacity and extend into new markets.'

The company reported a statutory loss before tax of £326.9m for the year compared with a profit of £152.6m last year, reflecting £277.3m Greyhound goodwill and other asset impairments, £106.3m TPE onerous contract provision and other adjusting items.

The company also said it expected an overall improvement in road margins and returns, would be offset by a smaller contribution from the First Rail portfolio, resulting in broadly stable group earnings in constant currency.

Deutsche Bank today reaffirms its hold investment rating on FirstGroup PLC (LON:FGP) and cut its price target to 83p (from 90p).

Liberum Capital today reaffirms its buy investment rating on FirstGroup PLC (LON:FGP) and cut its price target to 110p (from 125p).

Possible interest of FGP being aquired:
https://www.bloomberg.com/news/articles/2018-09-06/firstgroup-is-said-to-draw-private-equity-interest-including-cvc

StockMarketWire.com
Transport services company FirstGroup said Tuesday it had appointed Matthew Gregory as Chief Executive after but warned that rail profits would moderate.

The company maintained its full year outlook, and continued to expect broadly stable group operating earnings in constant currency for the full year, with improvement in the road divisions and a smaller rail contribution.

For the six months to 30 September, adjusted profit before tax rose 37.7% to £42m and revenues rose 19.2% to 3.30bn.

The uptick in revenue was supported by strong performance in First Rail, which saw like-for-like passenger revenue 5.5%, with solid financial contribution driven by First Greater Western (GWR) despite ongoing infrastructure issues.

First rail revenues grew 80.7% to £1.22bn during the first half of the year.

The statutory loss before tax widened to £4.6m from £1.9m a year earlier, reflecting restructuring and reorganisation costs from withdrawal of Greyhound services in Western Canada, the company said.

Challenges in Greyhound's long haul journeys continued, though the company stressed its commitment to turning around Greyhound's financial performance, targeting at least mid-single digit margins for the division in the medium term.

'We have made good progress in the first half delivering on our plans to strengthen the Group, generating sustained cash flow to further reduce leverage and deploy to targeted growth. First Student's bid season success will see our largest business return to growth as planned, while maintaining our disciplined approach to pricing, said Chief Executive Matthew Gregory.

'In September, First Bus completed the rollout of contactless payment across the UK on schedule, becoming the first of the UK's principal bus operators to do so. Together with other revenue and cost actions this helped First Bus to achieve strong margin improvement in the period.'

'Meanwhile our First Rail operations continued to focus on improving services for our passengers while maintaining overall profitability in a more challenging industry environment during the period.'