21st Jan 2015 08:42
LONDON (Alliance News) - FirstGroup PLC saw its shares rise early Wednesday after it said its overall trading is meeting its expectations, with weakness in its US Greyhound bus operations offset by growth in UK Rail and US First Transit, and its plan to turn around several of its units is continuing to make progress.
In a trading update, the rail and bus operator said it has experienced robust volume and revenue growth in its UK rail operations and the unit's financial performance is towards the top end of its expectations, while its UK bus business has reported continued volume growth and is making progress with cost savings.
In the US, the company said its First Student recovery plan is on track as it takes out costs and achieved improved pricing in the recent bid season, while First Transit is experiencing organic growth on existing contracts. However, it warned that demand for its Greyhound services had been hit over the holiday season by the sharp fall in fuel prices, which makes car travel more affordable.
"Our First Student and UK Bus transformation plans are on track and both divisions are
delivering the expected improvements in financial performance," Chief Executive Tom O'Toole said in a statement. "Overall we are on course to meet our full year expectations for the Group, and
we are confident that our multi-year plans will deliver improved cash generation and create sustainable value over the medium term."
FirstGroup shares were up 3.6% at 105.70 pence early Wednesday, the second-best performing stock in the FTSE 250.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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