First profits rise, despite driver sickness

FIRST Group has reported a strong performance in both its rail and bus divisions with passenger numbers up.

The transport group, which runs bus services across the north west and operates the TransPennine Express, said today that pre-tax profit for the year ended March 31 was £200m up from £151.9m the previous year.

Revenue for the period rose from £4.7bn to £6.2bn. Dividend per share is 18.75p (2008 17.5p). It said that passenger revenue across its UK rail operations had risen 7.7%.

The group admitted that “performance dipped” on the TransPennine route  due to line side cable theft, infrastructure failures and “unexpectedly high levels of driver sickness”.

“We are working with Network Rail to identify problem areas and restore the previous trend of improving punctuality and reliability,” said the group.

First Group’s UK Bus operation also saw a rise in revenues and passenger numbers. Its North American division performed strongly despite the economic downturn. 

Commenting on the results FirstGroup’s chief executive, Sir Moir Lockhead said: “I am delighted to report another excellent set of results in line with our expectations.

“The group has delivered a robust performance during the year despite a turbulent macro-economic backdrop. Across all of our operating divisions we have delivered revenue growth supported by our focus on safety, improved operational performance and customer service.”

However, he sounded a note of caution saying that no business could regard itself as completely immune from the global economic downturn and that across the sector there would be challenges to overcome.

The operator has embarked on cost cutting exercise across its operations, which is expected to save £200m in the next financial year.

“While it is still early in the new financial year, overall the group has continued to trade well and broadly in line with our expectations,” he added.

FirstGroup is one of the leading transport operators in the UK and North America employing around 136,000 staff and transporting some 2.5 billion passengers a year.