12th Nov 2015 07:45
LONDON (Alliance News) - FirstGroup PLC on Thursday said it swung to a pretax loss in the first half due to the impact of the loss of a rail franchise in the period, although its adjusted figures were weaker as well amid mixed trading across its operations.
The FTSE 250-listed transport operator said its pretax loss for the half to the end of September was GBP7.5 million, swung from a GBP9.9 million profit a year earlier, as revenue in the half fell to GBP2.44 billion from GBP2.94 billion due to the loss of the Capital Connect and ScotRail franchises.
FirstGroup said its trading was in line with its expectations in the half, with the rest of the rail portfolio performing well and financial performance at the top end of its forecasts, underpinned by strong passenger volume growth.
Trading, however, was somewhat mixed for the rest of its divisions. The First Student bus arm delivered contract pricing increases, though cost efficiency benefits were moderated by driver shortages and fewer operating days. First Transit also won more contracts, but is still taking a hit from the weakness in the Canadian oil sands market.
The group's Greyhound coach business in the US is still struggling, hit by lower gasoline prices which have encouraged potential coach users to use their cars instead, while the First Bus business saw mixed trading conditions, though FirstGroup said the cost actions taken in the business are on track.
"Overall trading for the group during the first half was in line with our expectations, with outperformance in some areas offsetting the more challenging market environment in others," said Tim O'Toole, FirstGroup's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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