LONDON - FirstGroup, a leading transport operator in the UK, has reported a shift to a pre-tax loss of £68.4 million for the first half of the fiscal year 2024. This loss is primarily due to a significant pension-related restructuring at its First Bus division, which incurred charges of approximately £142 million. This development marks a contrast to the profit of £8.7 million the company posted in the same period last year.
Despite the headline loss, the underlying financial health of the company appears robust. Excluding one-off costs, FirstGroup's adjusted pre-tax profit rose from £32.9 million to £71.3 million. This increase reflects the core business growth and resilience despite challenges.
Earlier today, CEO Graham Sutherland highlighted the company's strong financial outcomes, attributing them to sustainable growth and strategic initiatives focused on value creation. The adjusted operating profits surged to £100.6 million, up from £66.1 million previously, with earnings per share (EPS) improving from 4.6p to 8.1p. Shareholders will also see a dividend increase from 0.9p to 1.5p per share.
Total revenues were slightly lower at £2.207 billion, impacted by reduced government funding. However, this did not affect the bus division as severely as anticipated thanks to an impressive 18% rise in revenue, reaching £504.9 million. This boost was credited to elevated passenger volumes and positive pricing impacts.
The rail division exhibited mixed financial performance, with gains in open access services being overshadowed by weaker management-fee based operations.
Sutherland commended his employees for their continued hard work across the group, which supports governmental economic and environmental goals. He also emphasized FirstGroup's strong financial standing and commitment to aiding governmental economic, societal, and environmental agendas through their strategic bus and rail operations.
This report showcases FirstGroup's ability to navigate financial setbacks while maintaining focus on strategic growth and operational excellence in the public transportation sector.
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