18th Jun 2026 09:19
(Alliance News) - FirstGroup PLC on Thursday announced a new share buyback and raised its dividend as it projected healthy free cash flow
generation over the coming years.
The Aberdeen, Scotland-based bus and rail transport provider increased its full-year payout to 7.2 pence per share, up 11% on-year from 6.5p per share, including a final dividend of 5.0p per share, up from 4.8p per share.
In addition, it launched a further GBP100 million share buyback programme which is expected to completed over next 12 months. Last June, the firm announced a GBP50 million buyback which it completed last October.
FirstGroup said it anticipates free cash generation of GBP400 million over the next three years and "remains committed" to returning any surplus cash to shareholders.
Shares in FirstGroup rose 5.3% to 183.70p each in London on Thursday, the best performing stock on the FTSE 250 which was down 0.4%.
The news came alongside full-year results. FirstGroup said pretax profit fell to GBP158.8 million in the 52 weeks ended March 28 from GBP169.6 million the year prior.
Earnings per share edged up to 21.4 pence from 21.3p, or rose 7.2% to 20.7p from 19.3p on an adjusted basis. Revenue declined 9.2% to GBP4.75 billion from GBP5.23 billion.
"Our strong performance in financial 2026 against significant headwinds has reinforced our track record for delivery and shareholder returns," said Chief Executive Graham Sutherland.
Looking ahead, FirstGroup expects to maintain adjusted EPS in financial 2027, from a "higher quality" earnings base.
By Jeremy Cutler, Alliance News reporter
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