REG-FirstGroup Plc: 2024 AGM Statement

FirstgroupAnnouncement

26/07/2024 07:15

FIRSTGROUP PLC

2024 AGM STATEMENT

 

FirstGroup plc (`FirstGroup' or `the Group') will be holding its Annual
General Meeting (`AGM') at 14:30 today.

 

Trading

Ahead of the AGM, the Group notes that its overall trading performance for the
financial year-to-date has been in line with the expectations we outlined at
our full year results on 11 June 2024.

 

London Cable Car Operation

On 28 June 2024, the Group successfully took over the operation of the IFS
Cloud London Cable Car on behalf of Transport for London (`TfL'). The contract
has an initial core five-year term with the option to extend for a further
three years, with anticipated revenues of c.£60m over the eight-year period.
In addition to delivering a number of improvements to the service, we look
forward to working together with TfL to apply our extensive experience and
expertise to develop its customer proposition, promote it as a leader in
London's leisure market and place it at the heart of its local community.

 

Corporate update

As at 25 July 2024, just under £2m of the Group's £115m on-market share
buyback programme launched in August 2023 remained outstanding. The Group's
strong balance sheet and cash generative businesses provide considerable
optionality to invest in decarbonisation, to grow and diversify our portfolio
and for potential further capital returns to shareholders, and the Board
continues to keep this under review.

 

On 16 July 2024, the Group agreed terms with an insurance company to buy out
the remaining liabilities of the legacy Greyhound US pension plan, after
which, the plan will be terminated. Following a Group contribution of $6m,
gross liabilities valued at $155m (£123m) at the FY 2024 year-end are to be
removed from the Group's balance sheet and the Group expects to recognise a
settlement gain of c.£5m in the Group's income statement as an adjusting
item. This transaction concludes the Group's material liability discharge from
the legacy Greyhound business with a more favourable outcome than initially
forecast, and in the coming years, the Group anticipates a small cash surplus
relating to the final exit.

 

In June 2024, the Group was very pleased to be upgraded to the highest
possible AAA rating for ESG by MSCI (from AA previously). The upgrade was
primarily driven by improvements in greenhouse gas mitigation efforts
including our accredited Science Based target to cut Scope 1 and 2 greenhouse
gas emissions by 63% by 2035 (vs. 2020). MSCI also stated that the Group's
corporate governance practices now lead those of global peers.

 

H1 2025 Results

The Group is scheduled to announce its interim results for the six months to
the end of September 2024 on Thursday 14 November 2024.

 

Commenting, Chief Executive Officer Graham Sutherland said:

"FY 2024 was another successful year for FirstGroup as we continue to
transform and grow our leading bus and rail businesses. We remain focused on
working in partnership with government and all our stakeholders to deliver for
our customers and employees, lead in environmental and social sustainability
and support the delivery of wider economic goals."

 

 

 Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stuart Butchers, Head of Corporate Communications corporate.comms@firstgroup.co.uk Tel: +44 (0) 20 7725 3354  Contacts at Brunswick: Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959  

 

 Contacts at Panmure Liberum: Nicholas How / John Fishley Tel: +44 (0) 20 3100 2000  Contacts at RBC Europe Limited: James Agnew / Jack Wood Tel: +44 (0) 20 7653 4000  

 

 

Forward-looking statements

Certain statements included or incorporated by reference within this document
may constitute `forward-looking statements' with respect to the business,
strategy and plans of the Group and our current goals, assumptions and
expectations relating to our future financial condition, performance and
results. By their nature, forward-looking statements involve known and unknown
risks, assumptions, uncertainties and other factors that cause actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. No statement in this document should be construed
as a profit forecast for any period. Shareholders are cautioned not to place
undue reliance on the forward-looking statements. Except as required by the UK
Listing Rules and applicable law, the Group does not undertake any obligation
to update or change any forward-looking statements to reflect events occurring
after the date of this document.

 

Notes

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 3.1.

 

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.7 billion in revenue and around 30,000 employees,
we transported almost 2m passengers a day in FY 2024. We create solutions that
reduce complexity, making travel smoother and life easier. Our businesses are
at the heart of our communities and the essential services we provide are
critical to delivering wider economic, social and environmental goals. Each of
our divisions is a leader in its field: First Bus is one of the largest
regional bus operators in the UK, serving more than 20% of the population in
the UK with a fleet of around c.4,800 buses, and carrying more than a million
passengers a day. First Rail is one of the UK's largest rail operators, with
many years of experience running long-distance, commuter, regional and sleeper
rail services. We operate a fleet of c.3,700 locomotives and rail carriages
through three DfT contracted train operating companies: WCP (incorporating
Avanti West Coast and West Coast Partnership Development), GWR and SWR) and
two open access routes (Hull Trains and Lumo). We are formally committed to
operating a zero-emission First Bus fleet by 2035, and First Rail will help
support the UK Government's goal to remove all diesel-only trains from service
by 2040. During FY 2024 FirstGroup was named as one of the world's cleanest
200 public companies for the fifth consecutive year and achieved Industry
Top-Rated status for the first time with Sustainalytics. We provide easy and
convenient mobility, improving quality of life by connecting people and
communities. Visit our website at www.firstgroupplc.com and follow us
@firstgroupplc on X.

 

 

 

 

 

 

 

 

 

 

 

 



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