Scottish bus and rail giant FirstGroup 'resilient' in face of mounting challenges

FirstGroup, the Scottish transport heavyweight, said it was delivering a “resilient” performance in the face of a challenging political, economic and industrial relations environment.

Reporting half-year results, the Aberdeen-headquartered group said the financial performance at its First Rail business was led by strong growth in open access operations, which include the Lumo east coast rail service connecting Edinburgh and London. The firm said it was continuing to strengthen its First Bus operations for when current funding arrangements end, “while managing industry-wide driver shortages and cost inflation in the near term”.

The results for the 26 weeks to September 24 showed that group adjusted operating profit increased to £66.1 million, from £51.8m a year earlier. An interim dividend of 0.9p per share was declared, in line with announced policy.

Chief executive Graham Sutherland said: “We have delivered a resilient financial performance in the period despite significant headwinds - demonstrating our strengths in the UK bus and rail markets and the increasing capability and potential we are building into our businesses as public transport continues to navigate the aftershocks of pandemic travel restrictions. With a strong balance sheet and an important role supporting the sustainability and economic growth agendas in our core UK public transport markets, we see clear opportunities to create further value and deliver progressive returns to shareholders in the coming years.”

In June, FirstGroup rejected a £1.2 billion takeover proposal from an American serial suitor for being too low. It said the board believed the 118p-a-share upfront cash part of the unsolicited takeover approach from Miami-based I Squared Capital Advisors “significantly undervalued FirstGroup’s continuing operations and its future prospects”.