FirstGroup drives profit higher

3rd Nov 2010 07:43

Bus and train group FirstGroup revealed a 14% increase in first half profit, driven by continued strength at its UK rail and bus businesses.Pre-tax profit increased to £77.7m for the six months ended 30 September compared to £68m previously. Sales rose 4% to £3.07bn during the period. FirstGroup also increased its interim dividend by 7.1% to 7.12p.Newly appointed chief executive Tim O'Toole commented, "We are encouraged by improving trends in some of our markets. However, while the economic outlook remains uncertain, we continue to focus on opportunities to maximise growth and yield as well as delivering efficiencies."Like for like sales at its American Greyhound bus network grew 1.9% despite a difficult trading environment.Underlying ticket sales at its British rail business climbed 4.4% in the first half while British bus sales advanced 1.3%.FirstGroup said its strong cash performance is expected to continue and its target for full year net cash generation increased from £150m to £180m(excluding business disposal proceeds.)It is also confident of slashing its debt levels going forward.