15th Jul 2016 06:34
LONDON (Alliance News) - Public transport operator FirstGroup PLC on Friday said its revenue fell in its first quarter on a constant currency basis, but said it expects to make strong progress for the full year in spite of the "challenging and uncertain trading environment" in several of its markets.
FirstGroup said revenue declined 1.4% on a constant currency basis in the three months ended June when compared to the same period a year earlier, as like-for-like passenger revenue fell 5.0% in its US Greyhound coach business and dropped 1.4% in the UK-based First Bus business.
These declines were due to muted passenger demand in the US and lower high street retail footfall and congestion in the UK, offsetting rises in First Student, First Transit and First Rail, the company said.
However, FirstGroup made no changes to its full-year outlook, for the year to end March 2017, "recognising that the degree to which potential net currency benefits as a result of our significant US dollar-based businesses will be offset by a more challenging macroeconomic outlook for our UK businesses is uncertain, following the outcome of the EU referendum".
The company said its results will be "significantly weighted" to the second half due to the timing of school summer holidays on the First Student business.
"Our trading performance as outlined at the recent full year results in June has continued during the first quarter, and the group expects to make strong progress in the current year despite a challenging and uncertain trading environment in several of our markets," said Chief Executive Tim O'Toole.
"This will come from our continued focus on disciplined contract bidding and rigorous cost efficiency programmes, as well as lower fuel costs and more First Student operating days compared with the prior year. Overall, we expect to deliver a significant improvement in our profile of sustainable returns and cash generation going forward," O'Toole added.
By Hannah Boland; [email protected]; @Hannaheboland
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