Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The loss was caused by a write down of asset values. Underlying profit was reasonable albeit with reduced margins due to economic headwinds and they had free cash flow of circa £40m which was not bad. Wagamama is worth the current valuation if not more on it's own. I await Oasis's next move with interest!
Completion of acquisition of Ensignbus
Following the conclusion of a customary regulatory review, the Group completed the acquisition of Ensignbus on 9 March 2023. The Ensignbus business includes commercial bus operations in Essex, a vehicle refurbishment and re-sale operation, and a high value depot. The acquisition of this long-established, high-performing business will not only provide a number of synergies and value accretive growth opportunities in the B2B and bus vehicle dealership markets, but it will also enhance the Group’s local commercial bus operations in Essex.
Update on First Transit Earnout
Further to the Group’s announcement on 26 October 2022, the Group notes that EQT Infrastructure’s sale of First Transit to Transdev North America, Inc. has now completed.
FirstGroup is entitled to an earnout consideration which is calculated as a percentage of the realised equity value on the disposal and contemplating the cash flows generated by First Transit since March 2021 to completion. As previously announced, the Group currently estimates the earnout consideration to be approximately £74m. The Group anticipates confirmation of the earnout consideration and subsequent receipt of proceeds later in 2023.
Graham Sutherland, FirstGroup Chief Executive Officer, said:
“I am pleased by the Group’s progress in the second half of our 2023 financial year, which has been driven by increased passenger volumes and improved operational performance in bus and stronger than anticipated demand for our open access operations in rail. We remain committed to working closely with our partners to deliver successful bus and rail networks that serve the needs of our customers and communities and to playing a central role in achieving many of society’s economic, social and environmental aims.”
Trading Update
Released : 10.03.2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FIRSTGROUP PLC
Trading update
FirstGroup plc ('FirstGroup' or ‘the Group') today reports an update on trading since the half-year results for the 26 weeks to 24 September 2022, published in November 2022.
First Bus improved performance driven by higher passenger volumes in H2 2023 and driver resource pressures easing in certain locations
First Rail open access operations benefiting from stronger than anticipated passenger demand over the winter months
Acquisition of Ensign Bus Company Limited (‘Ensignbus’) completed
Sale of First Transit by EQT Infrastructure completed with final earnout consideration anticipated later in 2023
First Bus
Recent First Bus passenger volumes have increased to 83% of 2020 equivalent levels, with commercial and concessionary volumes at 87% and 75% respectively. The increase in demand has partially resulted from the £2 bus fare cap scheme introduced in England in January 2023, recently extended to the end of June 2023, and the Scottish Government’s funding for free bus travel for all under-22s that has been in place since January 2022.
First Bus has also benefited from improved driver resources in certain locations, with increased recruitment largely due to a number of initiatives introduced across the business, with more drivers completing their training and lower rates of attrition.
In addition, we welcomed the Government’s extension of the Bus Recovery Grant in February 2023, which will help protect vital services for passengers for a further three months. We continue to work with our government and industry partners on long-term funding arrangements for the sector.
First Rail
Our open access operations Lumo and Hull Trains, which are the only segment of the First Rail division where the Group takes full passenger revenue risk, have experienced stronger than anticipated passenger demand throughout H2 2023. The First Rail division has also benefited from the settlement of one-off claims relating to prior reporting periods.
FY 2023 Guidance
As a result of the factors detailed above, the Group anticipates that the FY 2023 Group adjusted operating profit and Group adjusted attributable profit will be ahead of the Group’s previous expectations. The Group’s expectations for FY 2024 remain unchanged.
The Group expects to report its results for the year ended 25 March 2023 on 8 June 2023.
Completion of acquisition of Ensignbus
Following the conclusion of a customary regulatory review, the Group completed the acquisition of Ensignbus on 9 March 2023. The Ensignbus business includes commercial bus operations in Essex, a vehicle refurbishment and re-sale operation, and a high value depot. The acquisition of this long-established, high-performing business will not only provide a number of synergies and value accretive growth opportunities in the B2B and bus vehicle dealership markets, but it will
Better get your short on if you have not already!
Accelerated Investment in First Bus Electrification
Released : 02.03.2023
FIRSTGROUP PLC
ACCELERATED INVESTMENT IN BUS AND INFRASTRUCTURE ELECTRIFICATION
FirstGroup plc ('FirstGroup' or the 'Group') is pleased to announce that it has committed an additional investment of £35m in the electrification of its bus fleet and infrastructure. As a result, the Group now anticipates total bus capital expenditure of £120-125m in FY 2024.
This follows successful applications made in partnership with four local authorities where First Bus operates, to secure £25m of Government co-funding to accelerate investment in new electric buses and related infrastructure through the Zero Emission Bus Regional Area (‘ZEBRA’) funding scheme.
This funding is in addition to that already awarded under the first ZEBRA scheme in March 2022 and will allow First Bus to order an additional 117 electric buses, taking the total number of electric buses in its fleet to more than 600 by March 2024. This is a significant milestone for First Bus, with its York and Norwich depots set to become the UK’s first bus depots outside of London to run fully electric fleets. Another two depots, Bramley in West Yorkshire and Hoeford in Hampshire, will also see the introduction of electric bus fleets and infrastructure as a result of this funding.
Graham Sutherland, FirstGroup Chief Executive Officer, said:
“As a leading regional bus operator, we have a key role to play in the decarbonisation of public transport in the UK. The acceleration of our investment in the electrification of our bus fleet and infrastructure, supported by co-funding from Government, is another important step for FirstGroup as we deliver on our commitment to decarbonise our fleet and deliver benefits for all of our stakeholders.”
There is no doubt that demand has dropped and will subsequently impact earning and profits, in the coming year or so. BDV have little debt, plenty of cash and are cutting back on capital purchases. The key questions for me are how long will demand be depressed, will inflation be controlled, can margins be maintained and how much is priced into the current SP. I think most priced in however SP may have a bumpy ride in next 3 to 6 months until the demand issue becomes clearer.
Transaction in Own Shares
Released : 22.02.2023
FirstGroup plc
Transaction in own shares
FirstGroup plc ("FirstGroup") announces that, in accordance with the terms of its share buyback programme (the "Programme") announced on 16 December 2022, it has purchased the following number of its ordinary shares of 5 pence each (“Ordinary Shares”) through RBC Europe Limited.
Date of Purchase 21 February 2023
Number of ordinary shares purchased 706,000
Weighted average price paid (p) 102.83
Highest price paid (p) 103.90
Lowest price paid (p) 101.50
Following the above purchase, FirstGroup holds 19,309,370 Ordinary Shares in treasury. The total number of Ordinary Shares in issue excluding shares held as treasury shares is 731,249,334. FirstGroup initially intends to hold the purchased shares as treasury shares but may cancel them in the due course.
The total number of voting rights in FirstGroup, excluding treasury shares as at 21 February 2023 is 731,249,334. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, FirstGroup under the FCA’s Disclosure and Transparency Rules.
Not sure I would agree that bad management is the sole reason for the current RTN SP, concerns re future earning potential given the economic conditions is far more likely to impact the SP. The results and outlook will make interesting reading and may or may not support Oasis's view, not long until we find out.
When will we get final results for 22/23 just asking!
Oasis clearly do not have any idea of the history of the past 5 years or so. Whilst an update in Jan would have been nice it is not the end of the world. A 14 year old playing with figures seems to have created the rest of their argument with no info re the rationale for the raises or the movement in cash balances, this is available and the reasons why! Oasis need to come up with some hard evidence that RTN are badly managed and have no coherent strategy.
mrc on revenue of £12m they generated cash flow of £8m before investing activities in 21/22. PMG will have a higher cash flow in 22/23 before investing activities so overheads well covered. For a significant investment then a placement has always been an option we will need to wait and see on that one. The new wells will support increased cashflows and easily support the current valuation imv, hopefully the interims will support this view! I also have reservations re Gniess but will be interested to see the outcome.
Good response from the board. What Oasis do next will be interesting and it might reveal their game plan! At double the current MC RTN would still be a bargain.
June to Oct £8m revenue from gas, new tariff for wind from Aug. I anticipate revenues of over £10m for first 6 months. By end of March we should be getting feel for the revenues from new wells. By the time get to June a fair chunk of the cash used in decommissioning will be replaced by cash generation in 22/23, not all, cash balances will go down but not by as much as many fear. Tax and exploration costs will also impact cash balances but relatively confident they will be cash generative for foreseeable future at existing prices, we will see.
Do not know who they are comparing with and over what period but a lot of companies in this sector are considerably down also! I am with you re board and think they have been responsive to a challenging enviroment. This is not the time to offload assets e.g. concessions which should be starting to fire on all cylinders, as the price would be way under that achievable in a bouyant market. Hopefully the next update will sooth nerves!
Let us hope we do get a decent uplift to reflect true value. Still waiting news on shareholder return seems to have gone quiet!
The First Group website, investors section has a tab re potential offer it is all on there.
They issued a statement on the 16th Aug 2022 saying they would not be pursuing a bid for FGP.
The board rejected the last takeover bid not long ago!
They have sold the assets bar a few remaining Greyhound properties in US!
Majority of debt is associated with leases. I would have been happier with a special dividend but hey ho!
RTN will have free cashflow of circa £60m this year. The current market value is £205m. Yes the recession may make things a bit harder but RTN are not facing armaggedon as far as I can see. SP does not make sense, should be double this at least! I am hoping the next update will reassure the market but who knows!