FirstGroup PLC has released a pre-close trading update, detailing the company's performance since the half-year results published in November 2023. The First Rail division has exceeded expectations due to strong performance in Open Access operations, effective yield management, and the settlement of certain one-off claims. The company has submitted an application for a new Open Access rail service between London and Sheffield, anticipating services to begin in the second half of 2025. Additionally, discussions are underway to extend London to Edinburgh journeys to Glasgow.
First Bus division's trading is strong and in line with expectations. The company is focusing on commercial opportunities for growth, operational efficiencies, and the electrification of its fleet and infrastructure. First Bus is on track to have over 600 electric buses and three fully electric commercial bus networks in England by Spring 2024. The recent acquisition of York Pullman Bus Company is expected to provide profitable growth opportunities in adjacent contracted services and commercial markets.
The company has been purchasing its September 2024 6.875% bonds and anticipates its FY 2024 Group adjusted operating profit and Group adjusted earnings to be slightly ahead of the Board's previous expectations. FirstGroup expects to end its FY 2024 financial year in an adjusted net cash position of £60-70m, with approximately £40m of the ongoing share buyback program still to be completed post year-end.
Graham Sutherland, FirstGroup Chief Executive Officer, expressed confidence in the company's progress and its ability to create sustainable value for stakeholders. The company will be hosting a First Rail Teach-in for analysts and investors and expects to report its results for the year ended 30 March 2024 on 11 June 2024.
The comprehensive update provides insight into FirstGroup's performance across its rail and bus divisions, strategic acquisitions, financial outlook, and future plans for expansion and operational improvements.