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."