FirstGroup profit doubles but UK bus arm faces tough road
TRANSPORT operator FirstGroup said yesterday that full-year profit more than doubled – a lift fuelled by strong performances from its UK rail and US coach businesses.
The bus and rail company reported a pre-tax profit of £279.9m for the year to the end of March, up from £126.5m last year.
It said revenues increased 4.1 per cent to £6.68bn but that the outlook was uncertain.
The company said it expected 2012/13 margins at its British bus unit to be hit by the tough economic climate, especially in the North of England and Scotland, rising fuel costs and reduced funding to the industry.
Chief executive Tim O’Toole said the bus unit was in for a shake-up with some parts of the business to be offloaded.
He added: “We are accelerating a comprehensive plan that will deliver sustainable growth in revenue and patronage and improved returns.
“This includes repositioning our UK Bus portfolio through a programme of business and asset disposals.” The company hiked the full-year dividend by seven per cent to 23.67p.