| Firstgroup's rail division trading 'ahead of expectations' Posted by ChrisB at 20:57, 15th April 2025 |     |
From Business Live, via MSN
Firstgroup's rail division has been performing better than anticipated, despite the UK government's radical reforms of the railway network that are raising industry-wide concerns.
On Tuesday, the publicly-traded transport company acknowledged that revenues from the Department for Transport (DfT) for contracted train operators surpassed previous projections, as reported by City AM.
The firm is also experiencing "strong demand" in its open access services, which are delivered by Lumo and Hull Trains.
Within the half-year period, Firstgroup secured access rights for two additional open access services and cemented a £500 million deal to lease 14 new trains manufactured in the UK.
However, the company has issued several warnings indicating that the establishment of the state-run Great British Railways (GBR) might constraint the expansion of open access services.
In comments to the DfT submitted on Monday, Firstgroup expressed apprehension that GBR could display "adverse monopolistic" behaviour, advocating for the Office of Rail and Road (ORR) regulator, responsible for approving new routes, to be "empowered to adjudicate fairly and impartially with fair, transparent and open decision-making."
Graham Sutherland, the head of Firstgroup, mentioned existing agreements that would allow them to double their open access operations with possibilities for even further growth.
In a reflective statement, Firstgroup declared its balance sheet remains "strong," projecting its net debts to fall between £85 and £90 million by the year's end.
At First Bus, the company predicts a two per cent rise in passenger numbers, with revenue from First Bus London expected to reach between £300m and £350m annually. The firm also anticipates maintaining its adjusted earnings per share in 2026.
"We have continued our strong financial and operational delivery in the second half of our financial year and have committed significant capital to further grow and diversify our portfolio," Sutherland stated.
On Tuesday, the publicly-traded transport company acknowledged that revenues from the Department for Transport (DfT) for contracted train operators surpassed previous projections, as reported by City AM.
The firm is also experiencing "strong demand" in its open access services, which are delivered by Lumo and Hull Trains.
Within the half-year period, Firstgroup secured access rights for two additional open access services and cemented a £500 million deal to lease 14 new trains manufactured in the UK.
However, the company has issued several warnings indicating that the establishment of the state-run Great British Railways (GBR) might constraint the expansion of open access services.
In comments to the DfT submitted on Monday, Firstgroup expressed apprehension that GBR could display "adverse monopolistic" behaviour, advocating for the Office of Rail and Road (ORR) regulator, responsible for approving new routes, to be "empowered to adjudicate fairly and impartially with fair, transparent and open decision-making."
Graham Sutherland, the head of Firstgroup, mentioned existing agreements that would allow them to double their open access operations with possibilities for even further growth.
In a reflective statement, Firstgroup declared its balance sheet remains "strong," projecting its net debts to fall between £85 and £90 million by the year's end.
At First Bus, the company predicts a two per cent rise in passenger numbers, with revenue from First Bus London expected to reach between £300m and £350m annually. The firm also anticipates maintaining its adjusted earnings per share in 2026.
"We have continued our strong financial and operational delivery in the second half of our financial year and have committed significant capital to further grow and diversify our portfolio," Sutherland stated.
