29th Mar 2006 07:00
Embargoed until 0700hrs on Wednesday 29 March 2006 FIRSTGROUP PLC TRADING UPDATE Ahead of a series of pre-close meetings with analysts to be held this week, weare pleased to report that, despite a challenging trading environment, inparticular with respect to increased fuel costs, overall trading for the yearto 31 March 2006 is in line with management expectations.We continue to see a strong performance from our UK Rail Division. We weredelighted to be awarded the contracts to operate both Greater Western andThameslink/Great Northern franchises and are now engaged in a mobilisationprocess to commence operation of these new, enlarged franchises on 1 April2006. Our existing operations continue to deliver a strong performance and weare particularly encouraged by the growth seen in our First ScotRail and FirstTransPennine Express franchises. We are shortlisted for the South Westernfranchise and remain very optimistic about the Group's future opportunities inUK railways.Our North America division continues to perform well, delivering consistentgrowth since we entered the market in 1999. We have continued to see strongcontract retention across the three businesses.Our UK Bus division has delivered a robust performance against a background ofincreased costs. We are very encouraged by strong on-bus revenue growth andimproved operational performance, reflecting our focus on service quality andefficiency. We have taken a number of actions to mitigate the impact ofincreased fuel costs and will continue to rigorously manage the business. Weare now fully hedged for approximately 38% of our Group fuel consumption for2006/07.The Board is committed to a progressive dividend policy and remains confidentof the prospects for the Group and its continued strong cash flows. The Boardhas announced that it will continue to grow the dividend by 10% per annum forthe foreseeable future, at least until 2008.The Group will announce preliminary results for the year to 31 March 2006 onWednesday 17 May 2006.Contacts:Dean Finch, Group Finance Director 07788 178942Rachael Borthwick, Head of Group Corporate Communications 07771 945432ENDFIRSTGROUP PLCRelated Shares:
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