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FirstGroup PLC on Tuesday reported increased first half profit boosted by acquisitions, but cautioned the loss of the South Western Railway national rail contract will lead to ‘marginally’ lower revenue in First Rail. Shares in the Aberdeen, Scotland-based bus and rail transport provider slumped 12% to 175.68 pence each on Tuesday morning in London. FirstGroup said pretax profit rose 8.5% to £76.3 million in the 26 weeks to September 27 from a restated £70.3 million the year prior. Adjusted operating profit increased 2.8% to £103.6 million from £100.8 million with growth from recent acquisitions and cost efficiencies offset by higher employers’ national insurance contributions and conclusion of the SWT national rail contract. Adjusted revenue climbed 30% to £833.6 million from £639.6 million reflecting growth in bus revenues, the contribution of First Bus London and progress in First Rail open access and rail services. Earnings per share increased 10% to 9.9 pence from 9.0p, or by 16% to 9.9p from 8.5p on an adjusted basis. The dividend was boosted 29% to 2.2p per share from 1.7p. Chief Executive Officer Graham Sutherland called it a ‘robust’ first half performance, noting progress in growing and diversifying the business and the positive earnings trajectory. ‘In the second half, we will benefit from the actions we have taken to restructure the business as well as the contribution of our recent acquisitions and expect modest growth in our adjusted earnings per share for the full year,’ he added. FirstGroup anticipates First Rail’s adjusted revenue and adjusted operating profit will be ‘marginally lower’ in financial 2026 year-on-year, with lower fees following the transfer of SWR to public ownership. In First Bus, the firm continues to anticipate full-year revenue of £1.4 billion, while adjusted operating profit in the second half will benefit from further efficiencies and annualised cost savings from the business restructure. The company anticipates modest growth in full-year adjusted EPS and to then ‘at least maintain’ adjusted EPS in financial 2027. In the 52 weeks to March 29, 2025, FirstGroup reported adjusted EPS of 19.4p. FirstGroup expects adjusted net debt between £125 million to £135 million at the end of financial 2026. In addition, the company continues to evaluate a ‘strong pipeline of strategic growth opportunities in bus and rail in line with our UK focused growth strategy.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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