FirstGroup posts half-year loss as travel curbs continue to weigh (updated)

Avanti Helium

10/12/2020 08:28

(Adds details on divisions, comments and share movement)
    Dec 10 (Reuters) - British transport operator FirstGroup Plc
 FGP.L  swung to an adjusted pretax half-year loss on Thursday,
hurt by continued pressure on its UK rail and bus divisions as
restrictions related to the pandemic prolonged the travel slump.
    The company, which ferried millions of passengers in buses
and trains before the pandemic, said adjusted pretax loss was
73.3 million pounds ($97.80 million) for the six months ended
Sept. 30, from a profit of 19.9 million pounds last year.
    Despite restrictions hammering income, FirstGroup said its
adjusted operating profit was ahead of its prior expectations
due to cost cuts and recovering revenue.
    The Aberdeen-based company has had a roller-coaster ride so
far this year that saw it warning in July on its ability to
continue as a going concern to upgrading its profit outlook in
September, when passenger numbers started to increase in the
post-lockdown period.  urn:newsml:reuters.com:*:nL4N2EF1GF
    Like all public transport providers in Britain, FirstGroup
has been supported by government funding during the coronavirus
pandemic to cover the costs of maintaining services.    
     The company also added that it remains in talks for a sale
of U.S. intercity coach operator Greyhound and was also seeking
to manage capacity and costs better and had gained further
support from government aid programmes.
    Chief Executive Matthew Gregory had told reporters in July
that the Greyhound sale, which it previously said was in
advanced stages, had slowed due to the coronavirus crisis.
    In a separate statement, FirstGroup said it has reached an
agreement with the UK Department of Transport (DfT) for
franchise termination payment related to South Western Railway
and Avanti companies, and the company is now negotiating new
directly awarded management contracts with the DfT.
    Shares of the company rose nearly 2% to 70.25 pence in early
trade.
   On Wednesday, Stagecoach, the UK's biggest bus and coach
operator, posted a 99% plunge in half-year earnings. 
 urn:newsml:reuters.com:*:nASN000M4B
    

    ($1 = 0.7495 pounds)

 (Reporting by Indranil Sarkar in Bengaluru, Editing by Sherry
Jacob-Phillips)
 ((Indranil.Sarkar@thomsonreuters.com; Mobile:  +91
7022132226;))