REG-FirstGroup Plc: Award of London Cable Car contract

FirstgroupAnnouncement

21/03/2024 07:00

FIRSTGROUP PLC

Award of London cable car contract

 

FirstGroup plc ('FirstGroup' or the 'Group') is pleased to announce that it
has been awarded the contract by Transport for London (`TfL') to operate the
IFS Cloud London Cable Car that links the Greenwich Peninsula with the Royal
Docks area on the north bank of the River Thames.

 

The contract will commence on 28 June 2024 and has an initial core five-year
term with the option to extend for a further three years. The Group
anticipates revenues of c.£60m over the eight-year period of the contract,
with patronage risk taken by the authority; there is also limited capital
expenditure and contingent capital.

 

Over the life of the contract, the Group will support TfL in its vision to
promote the cable car as a leader in London's leisure market. The Group is
already working on plans to improve the service during the period of the
contract, as well as creating educational outreach and work placements for
school students in the local boroughs of Greenwich and Newham.  

 
Graham Sutherland, FirstGroup Chief Executive Officer, said:
"We are delighted to have been awarded the contract to operate the London
cable car, the only urban cable car in the UK. We are looking forward to
working with Transport for London in order to develop the customer proposition
for this iconic London experience and landmark and place the service at the
heart of its local community."

 

"FirstGroup has been one of the largest transport operators in the country for
nearly three decades, working with a wide range of partners under various
forms of contract types, growing passenger demand, creating economic benefits
for our communities and delivering significant infrastructure projects. We are
actively pursuing opportunities to grow and diversify our portfolio and
earnings through further opportunities in the UK, including participating in
TfL tenders such as this."

 

 

 

 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 Group:  Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959  
                                                                                                                                                                                                                                                                         
 Contacts at Liberum Capital Limited:  Nicholas How / John Fishley Tel: +44 (0) 20 3100 2000                                                                                      Contacts at RBC Europe Limited:  James Agnew / Jamil Miah Tel: +44 (0) 20 7653 4000    

 

     
     

  

Forward-looking statements

Certain statements included or incorporated by reference within this
announcement 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 announcement 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 announcement.

 

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 £4.8 billion in revenue and around 30,000 employees,
we transported more than 1.8m passengers a day in 2022/23. 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 the second largest
regional bus operator in the UK, serving two-thirds of the country's 15
largest conurbations with a fleet of more than 4,500 buses, and carrying more
than a million passengers a day. First Rail is the UK's largest rail operator,
with many years of experience running long-distance, commuter, regional and
sleeper rail services. We operate a fleet of more than 3,500 locomotives and
rail carriages through three management fee-based train operating companies
(Avanti West Coast, GWR, 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. In February 2023 FirstGroup was
named as one of the world's cleanest 200 public companies for the fourth
consecutive year by sustainable business media group Corporate Knights in
partnership with US not-for-profit organisation, As You Sow. 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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