First Group puts US bus contract business up for sale

UK-based transport operator FirstGroup said it had put its North American contract businesses up for sale as the company rationalised its portfolio, adding that it had received “significant” interest from potential buyers.

First, which operates bus and rail services, also said group revenue was up 7.5% in the year to date with trading trends in its First Student, First Transit and First Bus “broadly similar to first half, with industry cost inflation and volatile passenger demand largely mitigated by management action and growth”.

“Greyhound’s trading environment remains difficult, though this has been offset by a stronger First Rail financial performance following GWR’s successful introduction of new trains and a major timetable upgrade,” the company said on Wednesday.

The company added that it had seen “no significant impact from the coronavirus outbreak to date” but was monitoring the situation and planning for a range of scenarios including changes to current government guidance or policy.