15th Nov 2016 08:05
LONDON (Alliance News) - FirstGroup PLC on Tuesday said it swung to profit in the first half of its financial year, boosted by a currency-driven expansion of its operating margin.
The FTSE 250 public transport operator, running bus, rail and coach services in the UK and US, said it made a pretax profit of GBP11.1 million in the half-year to the end of September, compared to a GBP7.5 million loss a year prior.
Revenue rose to GBP2.56 billion from GBP2.44 billion, up 5.1% thanks to good growth and a currency boost from the company's US-focused First Student and First Transit operations. In constant currencies, however, revenue was down 1.0% due to lower demand for its Greyhound coaches in the US and First Bus business in the UK, plus lower subsidies on the TransPennine Express.
FirstGroup said trading in the first half was in line with its expectations, with encouraging trends in North American offset by weakness in the UK.
"We continue to expect good progress for the group in the current year, recognising we will likely benefit from currency tailwinds from our substantial North American operations but will also face uncertain economic conditions in the UK for the foreseeable future," said Chief Executive Tim O'Toole.
"Our cash performance in the first half affirms our confidence in generating significantly increased cash flow for the full year," O'Toole added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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