FirstGroup on track for first-half

3rd Oct 2013 07:34

Transport firm FirstGroup said overall trading in the first half of its financial year is in line with company expectations, despite persistent headwinds in some of its markets.For the six months to September 30th, like-for-like (LFL) passenger revenue in its UK bus division is expected to increase by 1.6%, as its UK Bus transformation plans remain on track.The FTSE 250-listed group said UK Rail is expected to record a LFL passenger revenue increase of 5.7%.FirstGroup added that it continues to work through its recovery plan for its school bus transportation services division First Student. Elsewhere Greyhound's core market continued to be hit by the prolonged US economic downturn, with LFL revenue expected to be down 2.4% for the six-month period.First Transit enjoyed a solid first half, with US Dollar revenues expected to increase by 8.4% on a LFL basis (as adjusted for the disposal of FSS). Contract retention rates were maintained at over 90%, it explained.Tim O'Toole, FirstGroup's Chief Executive said: "While it is still early days, we are on track with our plans to return the group to a position of strength. The foundations have been laid for a more robust company."CJ