FirstGroup profits increase, US expansion

FirstGroup, Britain’s largest bus and train operator, has announced a 15% increase in profits in the first half of its financial year. Its bus business has seen the number of passengers leap by an average of 8%, with use rising particularly in the cities of northern England.

Chief executive, Moir Lockhead, said the group has spent £250 million improving its operating performance by ensuring they have enough staff and bringing in new buses. The chief exec said staff turnover is down to its lowest level in a long time.

Mr Lockhead added that the desire for people using the train is increasing. The group has noted improvements in revenue protection (catching ticket dodgers) and on FirstGreatWestern, passenger mileage has increased by offering discount fares to get people to London from the South-West.

Profits in the UK bus business rose 20% to £47 million while profits on the railways were up 10% to £48 million. The group said revenues were up by at least 10% at its London rail businesses FirstCapitalConnect, the north-south cross-London train company and FirstGroupWestern, based in Paddington.

The group reported a 24% increase in underlying pre-tax profits to £74.5 million in the 6 months to 30 September, its last trading period before it is transformed by its £1.9 billion takeover of US-based Laidlaw.

The takeover will make FirstGroup the largest operator of school buses in the US and more than 50% of the group’s business will be carried out in the US.

FirstGroup operates more than 1 in 5 of all local bus services. A fleet of almost 9,000 buses carries 2.9 million passengers a day in more than 40 major towns and cities.

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