FirstGroup bounces back to profit as bus revenues grow
FirstGroup, which runs Avanti West Coast and Great Western Railway, recorded a pre-tax profit of £169.6 million for the year to March.
Transport operator FirstGroup has returned to profit for the past year as it cheered progress in its bus and rail operations.
Shares in the Aberdeen-based company rose in early trading as investors welcomed stronger-than-expected profits.
FirstGroup, which runs Avanti West Coast and Great Western Railway, recorded a pre-tax profit of £169.6 million for the year to March, swinging from a £24.4 million loss a year earlier.
It also reported a group adjusted profit of £222.8 million for the year, up from £204.3 million a year earlier.
The company said it saw a particular rise in profitability from its First Bus business, which has been boosted by its return to the London market following its £90 million takeover of RATP Dev Transit London.
First Bus revenues grew 6.8% to £1.08 billion for the year despite a £17 million reduction in funding, as passenger numbers increased by 7% year-on-year.
Meanwhile, the group’s rail business said it saw passenger numbers on its open access lines, which include Hull Trains and Lumo, grow to 2.9 million for the year, from 2.7 million.
The Government has set out plans to nationalise UK rail operations, except for open access franchises and freight. FirstGroup said it has acquired track access rights for two new open access services.
Chief executive Graham Sutherland said: “I am pleased to report another positive set of results for our 2025 financial year.
“We have further strengthened our businesses and continued to deliver against our strategy, including growing and diversifying our earnings in both First Bus and First Rail.
“This leaves us well placed to at least maintain our adjusted earnings per share in full-year 2026, from a stronger base, as we continue to successfully navigate a period of transition in bus and rail in the UK.”
The company also told shareholders that it expects to secure around £15 million cost savings over the first half of the new financial year.
Shares in the business were 6.6% higher in early trading.