REG-FirstGroup Plc: Trading Statement

FirstgroupAnnouncement

15/04/2025 07:02

FIRSTGROUP PLC

post-close trading update

FirstGroup plc (the ‘Group’) today provides an update on trading since its
half year results published in November 2024, in respect of the financial year
ended 29 March 2025.

First Bus
The division delivered further revenue growth in H2 2025 with yield management
and the contribution of recent acquisitions more than offsetting a reduction
in funding.

Following the introduction in January 2025 of the £3 fare cap in England,
replacing the prior £2 cap, the division introduced a clear and simple
distance-based fare structure with resulting yield increases outpacing a
slight decline in passenger volumes. For the full year, the Group anticipates
passenger volume growth of c.2% vs. FY 2024 (excluding the extra week in FY
2024).

The £90m acquisition of RATP London completed on 28 February 2025 and the
integration of the business, now renamed First Bus London, is progressing
well. The Group generated revenue of c.£23m from First Bus London in the
final month of FY 2025. As previously announced, as the route contract
portfolio evolves over the coming years, the Group anticipates annual revenues
to grow to £300-350m with operating margins in line with historical London
levels of c.6-7%.  

First Rail
Trading in the division is ahead of expectations as the Group anticipates
higher than previously forecast full year variable fees from the
DfT-contracted Train Operating Companies. The team is supporting the
Government as the DfT prepares to take over the operation of South Western
Railway on 25 May 2025.

The division’s open access operations continue to perform well, reflecting
strong demand, effective yield management and continued high levels of
customer satisfaction. We have acquired track access rights for two new open
access services and signed a £500m agreement to lease 14 new UK-manufactured
trains, to facilitate the growth of our open access operations.

Financial Guidance 
Reflecting the stronger financial performance in First Rail and in-line
performance at First Bus, the Group anticipates that its FY 2025 adjusted
operating profit and adjusted earnings per share will be ahead of the
Group’s previous expectations.

The Group’s balance sheet remains strong and due mainly to the timing of
electric vehicle deliveries in First Bus, the Group now expects to end FY 2025
with an adjusted net debt position of c.£85-90m. This is lower than its
previous expectations despite completing the £50m share buyback programme
faster than initially anticipated.

The Group continues to anticipate that it will maintain its adjusted EPS in FY
2026.  

Graham Sutherland, FirstGroup Chief Executive Officer, commented:

“We have continued our strong financial and operational delivery in the
second half of our financial year and have committed significant capital to
further grow and diversify our portfolio. In First Bus, we have entered the
London market at scale and continued to extend our reach across the UK. In
First Rail, we have agreements in place to double the size of our open access
operations with potential to go much further.”

 

Notice of FY 2025 Results

The Group will report its results for the year ended 29 March 2025 on 10 June
2025.

 

 

 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: 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 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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