FirstGroup reinstates dividend as profits rise

14th Jun 2022 07:04

(Sharecast News) - Rail and bus operator FirstGroup, which last week rejected a £1.23bn takeover approach, reported higher adjusted operating profits and reinstated its dividend as travel recovered from the Covid pandemic.

The company posted profits of £226m compared with £220m a year ago for the year to March 26. Revenues fell to £5.5bn from £6.8bn, reflecting the sale of First Student, First Transit and Greyhound bus services.

"While some uncertainty remains around the pace of recovery in light of the pandemic and broader economic backdrop, current trading is in line with our expectations, with the group expected to make significant further progress in 2023," the company said on Tuesday.

A final dividend of 1.1p a share was declared.

FirstGroup last week rebuffed a series of unsolicited, conditional proposals from I Squared Capital, saying it "significantly undervalues" the FTSE 250 transport company.