FirstGroup off track after UK franchise losses and drop in oil prices
Rail and bus company FirstGroup has warned its revenue is likely to disappoint in the year ahead after the loss of key UK contracts while low oil prices hit business in North America.
Its UK rail division recorded like-for-like passenger revenue growth of 6.3 per cent in the three months ending 30 June. But it said this would “fall substantially lower” for the rest of the year following the end of the First Capital Connect and First ScotRail franchises.
Its US Greyhound buses saw revenue drop 5.7 per cent over the period as lower petrol prices saw people opting to drive more often.
“We anticipate strong progress for the current year in our non-rail businesses, mainly from the First Student and UK Bus turnarounds, to largely offset the reduced size of our UK Rail franchise portfolio compared with the prior year,” said chief executive Tim O’Toole yesterday.