REG-FirstGroup Plc: Rolling Stock Agreement for Stirling open access service

FirstgroupAnnouncement

02/06/2025 07:02

FIRSTGROUP PLC

Rolling Stock Agreement for stirling open access service

 

FirstGroup plc (or the `Group') is pleased to provide an update on its new
London to Stirling open access rail service.

As previously announced, in 2024 the Group acquired Grand Union Wcml which
included track access rights granted by the Office of Rail and Road (`ORR') to
run open access rail services from London Euston to Stirling. The current
track access agreement runs until 2030 and includes four return services a day
(three on Sundays) and an additional, fifth daily return service between
Preston and London, seven days a week.

 

The Group has subsequently entered into rolling stock leases for the duration
of the current track access agreement, for five Class 222 six car diesel
trains with Eversholt Rail, with a total seat capacity of c.340 standard class
seats per service, representing c.447m annual seat miles when fully
operational. Services are currently expected to commence mid 2026 following
the delivery of the trains and staff training.

 

The new service will be operated under the successful Lumo brand and will
provide more choice for passengers with significantly increased direct
connections to and from London and central and southern Scotland, making use
of available paths on the network. Stations served will include Stirling,
Larbert, Greenfaulds (serving Cumbernauld), Whifflet (serving Coatbridge),
Motherwell, Lockerbie, Carlisle, Preston, Crewe, Nuneaton, Milton Keynes and
London Euston. Of these stations, Whifflet, Greenfaulds and Larbert will have
their first direct services to London.

 

Following a period of mobilisation, the Group expects to achieve annual
revenues of c.£50m and a low double digit operating profit margin, pre IFRS
16. Looking ahead, the Group will evaluate opportunities to extend the track
access agreement, making use of the option for additional electric or bi-mode
trains from the Group's recently announced £500m rolling stock lease
agreement.

 

Open access rail operators are set up with solely private investment and take
full commercial risk and opportunity. The benefits of the successful open
access model, recognised by Government and the independent regulator ORR,
include connecting under-served places, helping to drive economic growth and
providing additional capacity on core routes which can push a modal shift away
from carbon-intensive travel.

 

Commenting, Chief Executive Officer Graham Sutherland said:

"The mobilisation of our new service between London and Stirling is another
important step towards rolling out Lumo as a nationwide operator and growing
our open access capacity, a key priority for the Group. Our investment and
capabilities in open access rail have delivered reliable, value for money
services, grown rail demand and helped to spur economic growth and connect
communities. We look forward to doing the same on our new services."

 

 

 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 Panmure Liberum: Nicholas How / John More Tel: +44 (0) 20 3100 2000  Contacts at RBC Europe Limited: James Agnew / James Maitland 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 bus
operators in the UK, serving more than 25% of the population in the UK with a
fleet of over 5,750 buses, and carrying more than a million passengers a day.
First Rail is one of the UK's most experienced rail operators, with many years
of experience running long-distance, commuter, regional and sleeper rail
services. We operate two DfT contracted train operating companies: WCP
(incorporating Avanti West Coast and West Coast Partnership Development) and
GWR, and two open access routes (Hull Trains and Lumo). We are formally
committed to operating a zero emission First Bus commercial 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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