1st Apr 2015 06:43
LONDON (Alliance News) - FTSE 250-listed transport company FirstGroup PLC Wednesday said its trading in the fourth quarter and whole of the financial year that ended on Tuesday was in line with its expectations, with good performances in its UK bus and rail operations.
FirstGroup said its UK bus business is delivering volume growth and achieving a positive yield, and it has made progress on cost-cutting efforts within the division. It added its UK rail business is outperforming on the back of strong passenger demand, and noted it has recently signed franchise agreements for both the First Great Western and First TransPennine Express services.
FirstGroup said its contract pricing strategy for its First Student arm in the US is resulting in some improvements so far, though fourth quarter trading for the unit was impacted by adverse weather conditions. Its US First Transit business grew in the year on solid margins and it continues to manage costs in its Greyhound business in order to mitigate passenger volume contraction.
"Overall trading for the year is in line with our expectations and we continue to make progress with our multi-year transformation plans, which will improve the group's financial performance and ensure we deliver sustainable value creation in the medium term," said Chief Executive Tim O'Toole.
By Sam Unsted; [email protected]; @SamUAtAlliance
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