FirstGroup in gear for year

13th Jan 2011 07:13

Bus and train group FirstGroup said overall third quarter trading was in line with management expectations and it is on course to achieve earnings and cash targets for the year.However the Aberdeen-based group warned that the recent bad weather hit Bus and Rail profit by around £7m and since its interim update in November 2010 it said the trading environment has remained challenging. "The prolonged and widespread disruption, particularly in the UK, caused by severe weather during the period impacted UK Bus and Rail profits. However, the group remains on course to achieve its earnings and cash targets for the year," it said in a company statement.Like-for-like passenger revenue at its UK Bus operations increased by 2.1% during the third quarter. UK Rail like-for-like passenger revenue grew by 5.2%. FirstGroup said it expects full year First Student revenue to be down slightly from the previous year due to reduced charter activity and some route consolidations. First Transit continues to perform in line with expectations after a strong start to the year. Meanwhile Greyhound revenues fell 2.5% as a result of continued economic conditions, high unemployment and the subsequent impact on consumer confidence, the group warned. FirstGroup said it remained committed to grow dividends by at least 7% per year.