FirstGroup shares drop as interim profit and revenue plunges

(Alliance News) - FirstGroup PLC on Wednesday said it delivered a "resilient" financial performance despite a challenging UK backdrop as it saw its interim profit plummet.

In the six months ended September 24, the Aberdeen, Scotland-based firm's total pretax profit plunged to GBP8.7 million from GBP516.5 million, on a statutory basis.

This was due primarily to the costs related to the restructuring of its First Bus division and the negative impact of its discontinued operations, First Student, First Transit and Greyhound Lines.

The company reported an interim loss on discontinued operations of GBP28.6 million, swung from a gain of GBP592.3 million a year ago.

As a part of the restructuring of First Bus, FirstGroup sold its First Scotland East business in September, realising a loss of GBP3.7 million as part of the disposal.

In additional, restructuring costs of GBP1.3 million were incurred as part of the company's ongoing cost efficiency initiatives.

Pretax profit from its continuing operations, however, swung to a profit of GBP37.0 million from a loss of GBP64.5 million the previous year.

Total statutory revenue fell 29% year-on-year to GBP2.21 billion from GBP3.11 billion, while revenue from continuing operations inched up to GBP2.21 billion from GBP2.14 billion, thanks to increased passenger revenue in First Bus.

FirstGroup's net debt rocketed to GBP1.48 billion at September 24, up sharply from GBP234.2 million at the same time a year prior.

FirstGroup declared an interim dividend of 0.9 pence per share. Last year, it did not declare an interim dividend.

Looking ahead, the firm said its expectations for the full-year are broadly unchanged, despite a shift in mix between its bus and rail divisions.

Shares in FirstGroup were down 9.5% at 96.80 pence on Wednesday afternoon in London.

By Heather Rydings; [e-mail]

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