14th Jul 2015 06:10
LONDON (Alliance News) - Public transport company FirstGroup PLC on Tuesday said it traded in line with its expectations in the first quarter of its current financial year, with continued growth in its UK rail business, but some more challenging conditions seen in its other units.
FTSE 250-listed FirstGroup said it continued to see strong passenger revenue growth in its UK rail business in the quarter to the end of June, but said its UK bus arm has seen continued commercial passenger revenue growth offset by concessionary revenue, though it is making progress on its cost efficiency programme in the latter business.
Elsewhere, the group said its Greyhound business in the US is still facing challenges from cheaper fuel, which is pushing people to use their own cars rather than coach services, but said this is being offset by a controlled cost base in the division.
First Transit has won further contracts in the quarter, but this is being offset by lower activity from the Canadian oil sands industry, while it said its First Student business' contract pricing strategy is progressing in line with its plans.
"Overall trading for the group during the first quarter was in line with our expectations and we remain focused on delivering further progress from our transformation plans," said Chief Executive Tim O'Toole.
By Sam Unsted; [email protected]; @SamUAtAlliance
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