FirstGroup hails 'strong' H1 in bus and rail, profits rise

(Sharecast News) - Transport operator FirstGroup posted a jump in first-half profit and revenue on Thursday as it hailed a strong performance in both bus and rail.

In the 27 weeks to 30 September, adjusted operating profit rose to £100.6m from £66.1m in the same period a year earlier, with adjusted earnings per share coming in at 8.1p, up from 4.6p.

FirstGroup declared an interim dividend of 1.5p a share, up from 0.9p.

Revenue from continuing operations was just a touch lower at £2.207bn, with First Bus revenue up 18% to £504.9m, mainly thanks to strong passenger volumes, service improvements and positive pricing impact. This was partly offset by lower receipts from government funding.

Meanwhile, First Rail saw increased revenue across its open access and additional services businesses, but this was more than offset by lower revenue in its management-fee based operations.

Chief executive Graham Sutherland said: "I am pleased to report another set of very strong results for the first half of our 2024 financial year. First Bus is delivering sustainable revenue growth as we continue to transform the business and our First Rail division also performed well. This is testament to the capabilities and continued hard work of all our teams across the group.

"We are a resilient and profitable business which is well-positioned to create long-term, value-accretive growth. Leveraging our leading positions in bus and rail, supported by our strong balance sheet enables us to continue to play a critical role in supporting governments' economic, societal and environmental goals."