- Trading trends prior to the pandemic were broadly similar throughout the year – industry cost pressures including labour and insurance costs largely offset by revenue growth in First Student, First Transit and First Bus (excluding disposals) and management actions. A more difficult trading environment for Greyhound was offset by a strong financial performance from GWR and the start of West Coast Partnership in First Rail
The Chief Executive of FirstGroup says the company will continue to take all necessary measures to enable the group emerge from this unprecedented situation in a robust situation.
The comments from Matthew Gregory come as the bus and operator of rail franchises, including Avanti West Coast and Great Western Railway, releases its results for the year to 31st March.
FirstGroup has reported nearly a £300 million loss, and says there are ‘material uncertainties’ as to the future consequences of the coronavirus pandemic.
In its divisional summary for First Rail, the company says: ‘like-for-like passenger revenue +0.2%. Strong GWR performance and successful start-up of the West Coast Partnership’s new Avanti franchise were offset by previously reported challenges in TPE and SWR. Secured GWR contract from April 2020 until at least 2023. All franchises underpinned by Emergency Measures Agreements with UK government until at least September.’
First Rail revenue increased to £3,185.9 million (2019: £2,666.7 million), principally reflecting the inclusion of the West Coast Partnership’s Avanti West Coast franchise from December 2019 and passenger revenue growth, higher subsidy receipts and final settle of certain GWR contractual amendments. Excluding Avanti, like-for-like passenger revenue growth was 0.2% with passenger volume decreasing by 1.3%.
Commenting generally on FirstGroup’s results, Chief Executive Matthew Gregory said: “The funding and support we have received from governments and our customers to sustain critical transport services is testament to their importance now and for the future.
“We took rapid action to protect our ability to deliver continuity of the transport services that are so essential to our economies. Our priority since the start of the outbreak has been the health and safety of the Group’s passengers and employees.
“I am immensely proud of our people who are working so hard to support our communities during the crisis, by maintaining essential transport services and providing direct assistance to those who need it most.
“There is no way of predicting with any certainty how the coronavirus pandemic will continue to affect the public transportation sector and the impact it may have on customer trends longer-term.
“However, as leading operators in each of our markets we are strongly positioned for a recovery in passenger demand and for the opportunities that may emerge from this exceptional period.
“This will become ever more pertinent as the focus and drive towards zero-carbon public transportation systems inevitably increases, helping to create a better connected and more sustainable world.
“Despite the near-term uncertainty, the long-term fundamentals of our businesses remain sound. We are resolutely committed to delivering our strategy to unlock material value for all shareholders through the sale of our North American divisions at the earliest appropriate opportunity. The importance of public transport to society has never been more clearly demonstrated, and we will continue to take all necessary measures to enable the Group to emerge from this unprecedented situation in a robust position.”
Click here to read the full results.
Photo credit: FirstGroup
