FirstGroup PLC has released its half-yearly report for the 27 weeks ending September 30, 2023. The company reported growth in profit driven by strong performance in both First Bus and First Rail. Group adjusted operating profit increased to £100.6 million, compared to £66.1 million in the same period last year. Adjusted EPS for continuing operations also increased to 8.1p, up from 4.6p in H1 2023. The company increased its interim dividend to 1.5p per share. During H1 2024, approximately £67 million was returned to shareholders through the Group's share buyback program. Adjusted net cash at the end of the period was £77.1 million.
FirstGroup's strategy is focused on operational delivery, driving modal shift, targeted investment in adjacent growth opportunities, and playing a leading role in environmental and societal sustainability. First Bus delivered further margin expansion in H1 2024, with an operating margin of 7.1% compared to 4.8% in H1 2023. The company is on track to have more than 600 electric buses, over 600 charger heads, and four fully electric depots in England by March 2024. First Rail was awarded a nine-year National Rail Contract for the West Coast Partnership. The company also entered into a £100 million strategic decarbonization joint venture with Hitachi. The Group's science-based emissions reduction target was approved by the Science Based Targets initiative. Approximately £75.5 million remains of the total £190 million being returned to shareholders through buyback programs.
In terms of key developments, First Bus reported 1.1 million passenger journeys per day and operated 84 million service miles in H1 2024. Passenger volumes increased by 8% compared to H1 2023. Total revenue increased to £504.9 million, despite a reduction in government funding. The operating margin increased to 7.1% due to stronger passenger volumes, improved driver availability, and operational efficiencies. First Rail reported 123.4 million passenger journeys in H1 2024, with open access operations performing ahead of expectations. The company was awarded a nine-year National Rail Contract for the West Coast Partnership. In the corporate sector, FirstGroup committed £10 million to a strategic decarbonization joint venture with Hitachi and received £48.9 million in earnout proceeds from First Transit.
Looking ahead, FirstGroup expects the ongoing challenging economic and operating environment to continue to impact its businesses. However, the company remains focused on delivering its strategy and driving growth in its core operations.