REG-FirstGroup Plc: Completion of RATP London acquisition

FirstgroupAnnouncement

28/02/2025 15:00

FIRSTGROUP PLC

completion of RATP London acquisition

 

FirstGroup plc (the `Group') is pleased to announce that it has completed its
acquisition of London bus operator RATP Dev Transit London Limited and its
subsidiaries (`RATP London') (the `Acquisition').

 

The Acquisition has facilitated the Group's entry into the London bus market
with a strong position and supports the Group's strategy of growing and
diversifying its revenue base.

 

As detailed in the Group's announcement on 10 December 2024, RATP London is
one of the principal bus operators in London, with a c.12% market share. The
operator has ten depots in Central and West London, a fleet of c.1,000 buses,
a third of which are fully electric, and c.3,700 employees.

 

RATP London currently operates 83 Transport for London (`TfL') route contracts
and as the contract portfolio evolves over the next five years annual revenues
are expected to grow to £300-350m, with operating margins in line with
historical London levels of c. 6-7%.

 

The Group anticipates a FY 2025 year-end adjusted net debt position of
c.£130-135m reflecting the completion of the RATP London and Matthews Coach
Hire acquisitions and the execution of the Group's £50m share buyback
programme that is now expected to be substantially complete by the year end.

 

 

 Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stuart Butchers, Group Head of 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 Panmure Liberum (Corporate Broker): Nicholas How / John More Tel: +44 (0) 20 3100 2000  RBC Europe Limited (Financial Adviser and Corporate Broker): Philip Turville / James Agnew / Jack Wood Tel: +44 (0) 20 7653 4000  

 

Notes

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

 

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.

 

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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