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FirstGroup pulls guidance as passenger numbers slump
23rd Mar 2020 08:11
(Sharecast News) - Bus and rail operator FirstGroup said it was no longer able to provide guidance on its results for the rest of the current financial year as passenger volumes slumped further in the UK and North America due to the coronavirus in recent days.
The group said it had signed a new ?250m bank bridge facility for refinancing of its next bond maturity in April 2021, adding that future capital expenditure orders had been put on hold.
"There have been substantial volume reductions in our passenger demand businesses in North America and the UK," the company said in a statement.
"First Student has been impacted by the closure of almost all of the schools which it serves, while First Transit is experiencing significantly reduced service requirements."
The company said government advice and policy in its markets was changing rapidly it was in "very active discussions" with customers about future service levels and full or partial payments in lieu of reduced service.
Passenger volumes in its rail businesses had reduced substantially since last week with revenue up to 90% lower over last few days, the company said.
In the UK the First Bus business has seen fare-paying passenger revenue declines and concessionary volume declines of around 65%.
"Across the group, a combination of salary sacrifice and deferrals, hiring freezes, and the halting of consultant and contract labour are being implemented," FirstGroup said.
"We welcome the government packages of emergency measures recently announced in North America and the UK to assist companies in managing their employment costs during this time."
The group said it had signed a new ?250m bank bridge facility for refinancing of its next bond maturity in April 2021, adding that future capital expenditure orders had been put on hold.
"There have been substantial volume reductions in our passenger demand businesses in North America and the UK," the company said in a statement.
"First Student has been impacted by the closure of almost all of the schools which it serves, while First Transit is experiencing significantly reduced service requirements."
The company said government advice and policy in its markets was changing rapidly it was in "very active discussions" with customers about future service levels and full or partial payments in lieu of reduced service.
Passenger volumes in its rail businesses had reduced substantially since last week with revenue up to 90% lower over last few days, the company said.
In the UK the First Bus business has seen fare-paying passenger revenue declines and concessionary volume declines of around 65%.
"Across the group, a combination of salary sacrifice and deferrals, hiring freezes, and the halting of consultant and contract labour are being implemented," FirstGroup said.
"We welcome the government packages of emergency measures recently announced in North America and the UK to assist companies in managing their employment costs during this time."