First Group says trading is on track

17th Jul 2013 07:02

FirstGroup said trading in the second quarter was in line with management expectations but warned shareholders there was still a lot to do to restore the company to strength.Ahead of its annual general meeting on July 17th, the transport group said the recovery programmes at its First Student and UK Bus arms were on track.The sluggish US economy affected the Greyhound business, where revenue fell 6.1% in the second quarter. Cost cuts at Greyhound have kept profitability on track for the year.First Group said the £615m rights issue completed during the quarter had eased pressure on its balance sheet and allowed room for investment in the business.Tim O'Toole, Chief Executive, said: "Trading during the period was in line with our expectations. While we continue to see challenging conditions in some of our markets, there is considerable long-term opportunity across the group and particularly from our recovery programmes in First Student and UK Bus. "The task of returning the group to the position of strength that our customers, employees, and shareholders expect will require hard work and persistent delivery for some time to come."