UK's FirstGroup uncertain on recovery pace amid new restrictions (updated)

First Business Financial Services

09/12/2021 07:57

(Adds details on results, outlook and background)
    Dec 9 (Reuters) - British transport company FirstGroup
 FGP.L  said on Thursday doubts remain about how quickly it can
recover following the new curbs imposed in England to fight off
the Omicron variant, with passenger numbers on its buses
slipping in recent weeks.
    Tougher restrictions in England, including orders to work
from home and wear masks in public places were announced by
British Prime Minister Boris Johnson late on Wednesday, in a
blow to some businesses hoping for a Christmas revival.
    The company said passenger volumes at its First Bus
operations were 71% of its 2019 levels on average in recent
weeks, representing a slowdown in the rate of improvement. 
    FirstGroup, which is now focused solely on running its UK
bus and rails after the sale of its North American assets, said
it would maintain its 2022 estimates due to the evolving
situation despite good performance in the half year ended
September. 
    While total adjusted operating profit in the six months
ended September was higher than the lockdown-hit 2020, earnings
from continuing operations were down 4% to 51.8 million pounds  
($68.37 million), it said. 
    FirstGroup added that it plans to start paying dividends
again within the next 12 months.     

    ($1 = 0.7576 pounds)
    

 (Reporting by Yadarisa Shabong and Amna Karimi in Bengaluru;
Editing by Sherry Jacob-Phillips)
 ((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
 +919742735150;))