26th Sep 2006 07:02
26 September 2006 FIRSTGROUP PLC TRADING UPDATE FirstGroup plc ("the Group") reports on trading ahead of a series of pre-closemeetings with analysts to be held this week.We are pleased to report that the Group has traded well and made a good startto the year.We continue to see a strong performance across our UK Rail Division and areparticularly pleased with the excellent start up of our two new franchisesFirst Great Western and First Capital Connect during the period, both of whichare trading ahead of our initial projections. First ScotRail and FirstTransPennine Express continue to deliver profitable growth together withexcellent operational performance. We are delighted to be shortlisted to bidfor East Midlands and New Cross Country and look forward to submittinginnovative and compelling bids for these two franchises.Trading for first six months of the year in our UK Bus Division has been goodand we are pleased with its performance. Revenue has grown through acombination of increased passenger journeys, concessions and pricing. Ourinitiatives to grow revenue and closely manage controllable costs in order tomitigate fuel cost pressure have delivered encouraging results.In North America all three divisions enjoyed strong contract retention. FirstStudent continued to expand with new contracts to operate yellow school busesdelivering further profitable growth. The start up of the new school year wentwell and we continue to focus on actions to mitigate cost pressures,principally fuel.The Board is committed to increasing shareholder value by continued growth inour core businesses, developing opportunities in new markets and dividendgrowth of 10% per annum for the foreseeable future. The Board remains confidentof the prospects for the Group and its continued strong cash flows.The Group will announce interim results for the six months to 30 September 2006on Wednesday 8 November 2006.Contacts:Dean Finch, Group Finance Director Tel: 020 7291 0512Rachael Borthwick, Group Corporate Communications Director Tel: 020 7291 0508ENDFIRSTGROUP PLCRelated Shares:
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