FirstGroup hit by severe weather conditions

2nd Apr 2014 07:04

- Severe weather, exchange rate hurts Greyhound and First Student - Good progress at UK Bus and Rail - Profit on track for full-yearTransport firm FirstGroup said it delivered good performances in four of its divisions, partially offset by slower progress in First Student, and is broadly on track to achieve medium-term targets.In a trading update, ahead of its full-year results the FTSE-250 firm said overall operating profit is in line with expectations for the year, excluding the £14m impact of unprecedented weather conditions on First Student and Greyhound in the fourth quarter.UK Bus like-for-like (LFL) passenger revenue growth is expected to be 1.8% for the year, with good passenger volume growth despite challenging conditions while UK Rail LFL passenger revenue is expected to increase by 5.9%.At Greyhound there was an underlying improvement in demand and profitable expansion of Greyhound Express. Dollar revenue is expected to be 2.9% lower for the year.First Transit LFL dollar revenue growth is expected to be over 7% and margins in line with expectations.Chief Executive Tim O'Toole said: "We have a detailed programme underway to reposition the contract portfolio, increase returns and drive further cost efficiencies. We will deliver earnings growth this year, albeit suppressed by the historically severe weather, particularly in North America. "We are broadly on track to achieve our medium term targets and while we are encouraged by the progress made so far, there remains a significant amount of work ahead."CJ