Scottish-headquartered transport giant FirstGroup revs up profit targets as bus and train travel regains momentum

Aberdeen-headquartered transport giant FirstGroup has announced that it expects profits for the year to surpass previous targets after an acceleration of bus and train demand.

The FTSE250 firm said adjusted operating profits for the 2023 financial year will be above previous guidance, following increased passenger volumes on its buses since September, as it has also seen driver staffing pressure ease. Recent First Bus passenger volumes have improved to 83 per cent of pre-pandemic levels.

It also said the jump in people opting to use buses has partially been linked to a £2 bus fare cap introduced in January and was recently extended, adding that its bus operation also saw increased recruitment help to improve driver numbers in certain locations, helping to support operations. The group last month said it had snapped up a bus business that provides rail replacement and private hire contract services in England, while it is to spend an additional £35 million to accelerate the roll-out of electric buses.

In rail, the company added in its latest trading update that its Lumo and Hull Trains operations experienced better-than-expected passenger demand" throughout the past six months.

The FTSE250 firm says it has seen increased passenger volumes on its buses since September, and driver staffing pressure ease. Picture: John Devlin.

Graham Sutherland, chief executive, said: "I am pleased by the group's progress in the second half of our 2023 financial year, which has been driven by increased passenger volumes and improved operational performance in bus, and stronger-than-anticipated demand for our open access operations in rail.

"We remain committed to working closely with our partners to deliver successful bus and rail networks that serve the needs of our customers and communities and to playing a central role in achieving many of society's economic, social and environmental aims.”