LONDON (Alliance News) - Go-Ahead Group PLC said Tuesday it has agreed terms with FTSE 250-listed peer FirstGroup PLC to purchase a bus depot in Manchester, England.
Go-Ahead has agreed to pay GBP11.2 million for The Queens' Road depot in Manchester, which also includes 163 buses.
The depot will operate under the Go North West brand. Go-Ahead will partner with Transport for Greater Manchester at the depot.
Separately, Aberdeen-headquartered FirstGroup said that its year-to-date reported revenue has increased 14%, with constant currency revenue, excluding its South Western Railway franchise, up 5.5%. The company's Road divisions revenue is up 1.9% year-to-date.
FirstGroup said its overall trading in the period supports its unchanged outlook for the full year.
"Our overall trading performance in the period was in line with our expectations; in particular last summer's strong bid season in First Student, our largest division, together with further momentum in First Bus, support our unchanged outlook for the full year," said FirstGroup Chief Executive Matthew Gregory.
First Student revenue is up 6.2% in the period from September 2018 to January compared to the same period a year ago, with a 5.8% year-to-date increase.
First Bus like-for-like passenger revenue is up 1.4% year-to-date and increased 1.3% in the period from September to January. First Rail like-for-like passenger revenue is up 5.0% year-to-date and increased 4.2% in the period from September to January.
First Rail's revenue growth slowed in the period, with FirstGroup blaming "significant" infrastructure challenges which resulted in disappointing operating performance for passengers towards the end of 2018.
FirstGroup also said its talks with the UK Department for Transport over the South Western Railway franchise remains ongoing.
FirstGroup recently refinanced its GBP250 million 6.125% coupon bond due January from cash on hand. The company said it will not have a significant effect on its overall interest costs in the future, as the bond has been swapped to a floating rate.
FirstGroup's next "major" refinancing is the GBP350 million 8.75% bond due April 2021.
"Recognising that overall conditions in our markets remain uncertain, and poor weather retains the potential to affect our performance, we are getting on with delivering plans that will improve services for customers and unlock the inherent value within the group," CEO Gregory said.
