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(Alliance News) - FirstGroup PLC on Tuesday published a trading update including guidance after posting its half-year results in November.
The Aberdeen-based transport company also said it has been shortlisted with its bid partner, Paris-based Keolis SA, to participate in the competitive process to select an operator for the Elizabeth line on behalf of Transport for London.
Further, FirstGroup said its First Rail unit performed slightly ahead of its own expectations due to a strong performance in the division's Open Access operations as a result of strong demand and what it called effective yield management.
"In addition, Lumo has identified opportunities to extend a number of its daily London to Edinburgh journeys to Glasgow. Discussions are in progress with Transport Scotland and Network Rail with regards to the final route options and timings, ahead of an application to the [Office of Rail & Road] for access rights. If successful, the new services will be operated with the existing Lumo fleet of all-electric trains and it is anticipated that they could begin in the second half of the 2025 calendar year," FirstGroup said.
The First Bus division also performed strongly, and in line with its own expectations, FirstGroup said. "We continue to focus on commercial opportunities to drive growth, the delivery of operational efficiencies and our continued progress in the electrification of the First Bus fleet and infrastructure. The division is on track to have more than 600 electric buses, around 15% of its fleet and three fully electric commercial bus networks in England by spring 2024, building on the progress already made in Scotland," it said.
Looking ahead to the current financial year ending later this month, FirstGroup said it anticipates adjusted operating profit and adjusted profit to be slightly ahead of its previous expectations, which it didn't specify on Tuesday.
Further, FirstGroup expects its financial year-end adjusted net cash position to drop by at least 36% to between GBP60 million and GBP70 million from GBP109.9 million a year before, but significantly higher than the previous guidance range of GBP10 million to GBP20 million.
Chief Executive Officer Graham Sutherland said: "Our focus on operational delivery, driving demand for our services and growing and diversifying our portfolio has resulted in further progress in the second half of our financial year. This leaves us well positioned to create further sustainable value for all our stakeholders."
FirstGroup shares rose 1.2% to 163.40 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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