First Group sees small FY profit as revenues improve

Bus and rail operator FirstGroup said it expected to make a better-than-expected small full year profit as passenger numbers slowly recovered from the coronavirus pandemic.

The company, which has put its North American business on the market, said it was “encouraged by significant interest from potential buyers”.

“Overall, our divisions have delivered better revenue recovery and strong cost control in the period and the group is now expecting to generate a small adjusted operating profit in the seasonally weaker first half of the financial year. This anticipated result is ahead of our expectations earlier this summer,” FirstGroup said in a statement ahead of its annual meeting.

A return to school and universities meant UK bus passenger numbers had recovered to around 50% of pre-pandemic levels in recent weeks, from a low point of 10%.

Passenger levels on the group’s train franchises were still only around a third of pre-pandemic levels.

In the US, school bus revenues were at 70% of pre-pandemic levels. First Transit coach travel, classed as an essential service with payments based on availability rather than volume, reported revenues at 67% while Greyhound buses were below 40%.