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FirstGroup swings to interim pre-tax loss
10th Dec 2020 08:24
(Sharecast News) - Transport operator FirstGroup swung to an interim pre-tax loss in 2020 amid continued pressure on its British rail and bus units due to the Covid-19 pandemic and the travel slump associated with it.
FirstGroup reported a pre-tax loss of £73.3m for the six months ended 30 September, a marked turnaround from the profit of £19.9m posted at the same time a year earlier. Adjusted operating profits came to £10.4m.
The FTSE 250-listed firm primarily cited a rise in one-off costs for the pre-tax loss but also highlighted that net cash from operating activities had more than doubled to £688.2m.
Revenues fell 23.8% to £3.10bn, with reduced passenger activity being partially offset by government procurement of services to enable socially distanced travel and strong revenue recoveries from North American contract customers.
Chief executive Matthew Gregory said: "Whilst the outlook remains uncertain due to the pandemic, we performed ahead of our expectations in the first half, have taken prudent action to reinforce the balance sheet and are confident in the resilience of the group.
"Looking ahead, we will continue to work with our customers and communities to deliver safe, reliable and increasingly sustainable transportation as societies begin to look beyond the crisis and passengers return."
As of 0915 GMT, FirstGroup shares were up 1.60% at 70.05p.
FirstGroup reported a pre-tax loss of £73.3m for the six months ended 30 September, a marked turnaround from the profit of £19.9m posted at the same time a year earlier. Adjusted operating profits came to £10.4m.
The FTSE 250-listed firm primarily cited a rise in one-off costs for the pre-tax loss but also highlighted that net cash from operating activities had more than doubled to £688.2m.
Revenues fell 23.8% to £3.10bn, with reduced passenger activity being partially offset by government procurement of services to enable socially distanced travel and strong revenue recoveries from North American contract customers.
Chief executive Matthew Gregory said: "Whilst the outlook remains uncertain due to the pandemic, we performed ahead of our expectations in the first half, have taken prudent action to reinforce the balance sheet and are confident in the resilience of the group.
"Looking ahead, we will continue to work with our customers and communities to deliver safe, reliable and increasingly sustainable transportation as societies begin to look beyond the crisis and passengers return."
As of 0915 GMT, FirstGroup shares were up 1.60% at 70.05p.