FirstGroup Says Trading In Line, Reiterates Earnings Growth

8th Jul 2010 11:26

By Jonathan Buck Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Transport operator FirstGroup PLC (FGP.LN) Thursday said trading in its fiscal first quarter was in line with management expectations and it reiterated that it anticipates moderate earnings growth for the year. "With leading positions in all of our core markets, the board is confident in the underlying strength and resilience of the business and its prospects for delivering continued long-term shareholder value," the bus and rail company said in a trading update delivered at its annual general meeting. Against a backdrop of challenging trading conditions, FirstGroup said it remained focused on maintaining and improving margins through rigorous cost control, adapting service provision in line with demand and increasing operating efficiencies. Like-for-like passenger revenue at its U.K. bus division grew 0.9% during the period. Network management on a route-by-route basis had led to targeted mileage reductions and continued to protect revenue per mile, the company said. "As we experience a strengthening of passenger volumes as a result of economic recovery we expect to increase the frequency of services and to grow our bus networks," FirstGroup added. It said its U.K. rail business continued to deliver a good performance with like-for-like passenger revenue growth of 3.7% in the period, despite the reduction in regulated fares from January 2010. "We are encouraged by the continued trend of strong volume growth across all of our rail franchises during the first quarter," FirstGroup said. Its rail franchises include First Great Western, First ScotRail and First Capital Connect. Dollar revenue in its U.S. First Student business, which operates yellow school buses, was broadly flat during the period due to pressure on school board budgets. Greyhound continued to demonstrate improving trends with like-for-like passenger revenue up 3%. At 1020 GMT, FirstGroup's shares traded up 3 pence, or 0.8%, at 377 pence in a broadly higher London market. They have fallen 10% in value since the start of 2010. -By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 9237; [email protected] (END) Dow Jones Newswires July 08, 2010 06:26 ET (10:26 GMT)