Aberdeen-based FirstGroup posts sharp rise in profits

First Student busesImage copyright
FirstGroup

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FirstGroup’s school bus division in North America help to lift the company’s profits last year

Transport giant FirstGroup warned of ongoing economic uncertainty inside UK as the item posted a jump in annual profits.

The firm saw underlying pre-tax profits rise 23% to £207m, following a strong performance through its First Student school bus operation in North America.

Aberdeen-based FirstGroup said its American arm benefited through the weak pound.

although the pound’s impact on fuel costs left the item nursing a £19.8m profits hit across its UK bus in addition to rail divisions.

Overall group revenues over the year to 31 March were up 8.3%, at £5.65bn, with operating profit rising 12.7% to £339m.

Underlying operating profits in its bus operations fell 29% to £37m, while rail earnings dropped 26% to £53.8m.

The Aberdeen-based group also saw bus passenger revenues fall 0.6% on a like-for-like basis, after being hit by falling numbers of shoppers on the high street in addition to ongoing issues with traffic congestion in some areas.

Image copyright
FirstGroup

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The transport group said bus passenger revenues were hit by falling numbers of shoppers on the high street

Meanwhile, like-for-like passenger revenues rose by 1.3% in its rail business, which includes the Great Western in addition to TransPennine Express UK rail franchises, However, the company said growth was held back by a slowdown across the industry.

FirstGroup said trading conditions might continue to be uneven across the group.

the item added: “The group faces a mixed trading environment with opportunities for steady progress inside North American divisions although continued economic uncertainty inside UK.”

The group’s year was marred by the crash on its Croydon Tramlink line last November, which killed seven people in addition to injured more than 50 others.

Chief executive Tim O’Toole said the company remained “focused on understanding the exact cause of This kind of incident in addition to will continue to provide our full support to the ongoing investigations”.

He added which the results of investigations may still not be known “for many months”.

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