FirstGroup all aboard for first half

29th Sep 2011 07:07

Rail and bus company FirstGroup said overall trading during the first half of the current financial year has been in line with management's expectations.In its UK Bus division like-for-like passenger revenue for the six months to 30 September 2011 is expected to increase by 1.2% and its continues to deliver some improvement to operating margin."However, looking ahead as the macroeconomic environment has continued to soften, we anticipate more challenging trading conditions during the second half of the current financial year as lower economic activity continues to impact regional economies," the group said in the company update.Trading at its UK rail division continues to be strong. Increased demand for rail services led to good volume growth across all of its franchises and like-for-like passenger revenue is expected to increase by 9%.First Student's performance developed in line with company expectations while its transit division continues to deliver growth. Revenues are expected to increase by 2% on a like-for-like basis.Greyhound revenue trends were 'encouraging' with like-for-like passenger revenue expected to increase by 3.6%. "Greyhound Express continues to perform well and we expanded the service to new locations in the midwest, northeast and southeast of the US."Looking ahead FirstGroup said, "While we continue to address the immediate challenges presented by weak economic conditions in certain markets in which we operate, the board is confident the group has good prospects."---CJ