10th Dec 2020 12:56
(Alliance News) - FirstGroup PLC on Thursday reported a narrowed loss in the first half, boasting it has performed ahead of internal expectations as the transport firm faces an uncertain outlook amid the pandemic.
For the six months to six months to September 30, the Aberdeen based transport firm recorded a pretax loss of GBP100.1 million, narrowed from a GBP187.1 million loss the year before.
Interim revenue slipped 12% year on year to GBP3.10 billion from GBP3.53 billion. In constant currency and excluding the new Avanti contract that started in December 2019, revenue decreased by GBP838.2 million as a result of the pandemic, the company said.
FirstGroup's operating costs fell to GBP3.12 billion from GBP3.65 billion.
"The health and safety of our passengers and employees is our priority and they can be confident that our trains and buses are safe. We have implemented social distancing measures, enhanced cleaning protocols and innovative technology to improve the customer experience. I am very proud of the extraordinary efforts and commitment from all our employees during these challenging times," Chief Executive Matthew Gregory said.
He continued: "Our services are crucial to local communities on both sides of the Atlantic, and we have worked in partnership with our customers and governments to ensure that they are maintained throughout the pandemic. As society seeks to recover from the present crisis and build back better, we will play a vital role in providing more environmentally sustainable, value for money transport connections."
Gregory noted the company's outlook remains "uncertain", but said it was able to outperform internal expectations in the first half.
"Looking ahead, we will continue to work with our customers and communities to deliver safe, reliable and increasingly sustainable transportation as societies begin to look beyond the crisis and passengers return," he continued.
Gregory added: "We continue to progress our plans to rationalise the portfolio as the best means to unlock material value for all shareholders. With respect to the divestment of our North American contract businesses, we are in discussions with a number of credible potential buyers who have a long term perspective, which the company and our advisers are exploring and evaluating."
Shares in FirstGroup were down 2.0% in London on Thursday at 67.59 pence each.
By Paul McGowan; [email protected]
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