FirstGroup 'on course' for full year with 'modest' earnings growth
FirstGroup PLC on Thursday said both its divisions are trading as expected, although it expects to report higher adjusted net debt.
For the full year ending March 28, the Aberdeen, Scotland-based bus and rail transport provider said it still expects modest growth in adjusted earnings per share, compared with the prior year’s growth to 19.3 pence from 16.4p.
FirstGroup also anticipates an adjusted net debt position of between £135 million and £145 million at the year’s end, in light of ‘some minor bus portfolio and network optimisation’ and its acquisitions of J&B Coaches and Hills Coaches. This would be up from £86.9 million one year prior.
The company said its First Bus division is trading in line with expectations, ‘thanks to the contribution of First Bus London and growth in our Business and Coach division, alongside the actions we have taken to mitigate the lower funding and cost inflation experienced across the UK bus industry.’
It said the same goes for First Rail trading, and that mobilisation of a new Lumo service between London Euston and Stirling ‘is progressing well and on course to be fully operational in July’. Additionally, it expects to deliver the mobilisation programme for the contract it won in December, to operate the London Overground, ahead of the contract’s May 3 start.
Additionally, noting ‘potential geopolitical risk escalation’, FirstGroup said it entered additional fuel hedges in February to bring its total hedged position to around 88% of its requirements for financial 2027, and around 53% for financial 2028.
‘The second half of our financial year has been another important period for the group, with the award of the London Overground contract, the expansion of our open access rail services and further value accretive acquisitions in First Bus to grow our operational and asset footprint in key markets,’ commented Chief Executive Officer Graham Sutherland. ‘We are on course to deliver on our commitments for FY 2026 and remain focused on the successful execution of our UK focused growth strategy to maintain our positive earnings trajectory.’
FirstGroup shares were down 0.1% at 172.60p on Thursday in London.
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