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Blowout results....wish I had more in them now
Anyone have any thoughts for the 8th?
7 consecutive down days.
FGP has actioned December plan supporting the share price from collapsing with share buyback after the predicted lose of TPE contract. Fridays buyback stood at 497,695, expecting similar numbers for todays buyback and also for the next few days, will trade next week when the share price will fall to around 107 in my estimation, it is my opinion.
Nonsense, the appointment of Mobico (National Express) would require a public procurement process.
The loss of this contract is a double blow to FG as they will lose not just the management fee but also soon lose the lucrative management of the rail replacement contracts which the Govt have allowed them to self award themselves since this franchise began
Yesterday share buy back was 511 thousands and the day before losing the TPE contract 445 thousands, a lot questions from market must be answered by the management, form strike resolution to poor planning a head which lead to losing a contact which generated 14.9 million operating profit. I can see changes at the top in the near future.
I have a feeling Mobico, which was conveniently announced just yesterday will be taking over the contract.
Either that, or the timing is a massive coincidence.
The government will soon see the rigidty of the whole set up. FGP was not the source of the problem.
The reality is changing management will not change current service delivery in the short term, the issue is a lack of available drivers and this being addressed. Will they keep under direct control for long or award back to FGP or another provider time will tell but with an election looming suspect it will be decided sooner rather than later.
So this has happened, I called this ages ago, TPE have been cancelling trains since forever, next it will be Avanti West Coast, they have been in the news for cancelling trains. It seems to me it’s a FGP thing. If memory serves me correctly, I’m sure there was a vote years back to come out of rail franchising all together, probably wasn’t a bad call. Shame they have tainted the West Coast with the same brush. GWR another operator, out of the spotlight but not too far from controversy. We can keep banging the drum about the Emergency Measures Agreement (ERMA) but ultimately speaking under the ERMA they still have targets to meet and they are not meeting them. This will drop like a balloon but how far is anyone’s guess. I’ve sold, I’m done
The DFT pulling the plug was expected. FGP board warned time and time again about the public anger and the must do better, now they have to face the music and the huge problems a head, very sloppy management took their eyes off the ball pi**ing around with Arriva and Europe. I think once the buy back ends then we will see the real share value, for the time being I am staying out of investing in FGP.
FIRSTGROUP PLC - Statement on TransPennine Contract
11/05/2023 7:31am
PR Newswire (US)
Firstgroup (LSE:FGP)
Intraday Stock Chart
Thursday 11 May 2023
Click Here for more Firstgroup Charts.
FIRSTGROUP PLC
STATEMENT ON TRANSPENNINE EXPRESS CONTRACT
FirstGroup plc (‘the Group’) today announces that it has been notified by the Department for Transport (‘DfT’) that it will not exercise its option to extend the current arrangements for the TransPennine Express (‘TPE’) National Rail Contract.
The DfT will appoint its Operator of Last Resort to take over delivery of passenger services on the TPE network from 28 May 2023 when the existing agreement expires. The DfT’s decision regarding the TPE National Rail Contract extension relates only to TPE and the Group’s other rail businesses are not affected.
For a sustained period during the first year of the current contract, TPE posted its best performance results for a decade. However, in 2022 TPE’s service levels declined due to circumstances not wholly within the operator’s control, mainly the challenging industrial relations environment including the withdrawal of longstanding industry-standard overtime arrangements while undertaking unprecedented driver training requirements due to infrastructure upgrades. Following the introduction of an agreed recovery plan in February 2023, cancellations have fallen by approximately 40% and will continue to do so as more drivers become available over the next few months.
The Group is disappointed by the decision not to extend the National Rail Contract for TPE, given the investment and improvements we have made to the service over the years, which resulted in growing annual passenger numbers from 14m in 2004 to more than 29m before the pandemic.
Commenting, Graham Sutherland, FirstGroup Chief Executive Officer said:
“We have operated TransPennine Express and its forerunners since 2004, and are very proud to have served the communities across northern England and into Scotland, carrying millions of passengers and introducing new trains, new routes and more seats for our customers. Our team have worked extremely hard to improve services, including by recruiting and training more drivers than ever before. We have also worked closely with the DfT and Transport for the North on an agreed recovery plan as well as an improved offer on overtime working for our drivers.
“FirstGroup is a leading UK rail operator with a strong and diversified portfolio. Today’s decision does not alter our belief in the important role of private rail operators in the delivery of vital, environmentally-friendly transport for customers and communities across the UK.”
Notes to Editors
In FY 2022, TPE contributed £415.8m of revenue to the Group’s total of £4,591.1m; £13.2m of adjusted operating profit and £8.9m of attributable net income, which is the Group’s share of the relevant net post-tax fee income available for intra-company distribution.
The £75m share buy back commenced in Dec 22 has to date purchased just under 40m shares. So they are roughly two thirds of the way through the buy back process. How much the buyback is supporting the current price rise is debatable!
Thanks Bae126.. Already over 127. Hope they don't fall back.
Share buy back, have a look at ADVFN and you will have an accurate buy back numbers by FGP, my personal take is to wait few more days when it will be done and dusted. I hope by then the price will be near 122 mark.
Does anyone know why SP has gone up today and has been rising for last few days?
The government don't want the headache of running a train company. It's blustering
From the Guardian( TransPennine Express trains had the worst performance of any rail operator in the UK in March, with almost 1,000 trains fully or partly cancelled.
The train operator is owned by the First Group and its contract is due for renewal on 28 May, but MPs and metro mayors have called on the government to take TPE back into public ownership). For the time being I will set and watch.
That would be a strange union given that isquared made a hostile bid for FG last year. Bid or no bid, summer passenger numbers must be up.
Gasman71 - I Squard might be playing clever games. Join forces with First to bid for Arriva but actually they might want First & Arriva both.
I think the cause for the rise is the DOT soon to make a decision on the TPE contract renewal.
I think the share price rise is speculation that I Squared maybe back in for First Group. I can’t see them bidding for Arriva
David You welcome. Yes definitely is , special as First has never performed since Mori Lockheed left and he did well as they were buying council owed bus business at cut prices.
RoyGa thanks. A bit of a concern for me, especially if it involves either a fund raise or borrowing vast sums!