(Alliance News) - FirstGroup PLC on Thursday said it swung to a loss in its first half of the financial year due to a pension charge, but backed its full-year expectations as it eyes continued growth.
The Aberdeen-based transport company swung to a pretax loss of GBP68.5 million in the six months to September 30 from a profit of GBP37.0 million a year ago, due to a GBP142.3 million pension charge.
Total operating costs grew marginally by 4.7% to GBP2.25 billion from GBP2.15 billion the previous year.
Revenue dipped to GBP2.21 billion from GBP2.22 billion the year prior, but the company credited its First Bus business, which saw revenue soar by 77% to GBP504.9 million from GBP427.7 million the year before, due to an increase in passenger volumes.
FirstGroup upped its interim dividend by 67% to 1.5 pence per share from 0.9p per share in the first half of financial 2023.
Looking ahead, FirstGroup said its trading and outlook are in line with its full-year expectations.
It expects to reach an adjusted net cash position of GBP20 million to GBP30 million by March 31 next year. Group adjusted operating profit, meanwhile, should be around GBP14 million to GBP20 million higher than anticipated, with adjusted attributable profit around GBP7 million to GBP10 million higher.
Chief Executive Officer Graham Sutherland said: "We are a resilient and profitable business which is well-positioned to create long-term, value-accretive growth. Leveraging our leading positions in bus and rail, supported by our strong balance sheet enables us to continue to play a critical role in supporting governments' economic, societal and environmental goals."
Shares in FirstGroup were down 4.7% at 166.70 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Firstgroup (FGP)