Transport giant FirstGroup, of Aberdeen, is eyeing expansion opportunities in mainland Europe.
It is “continuing to monitor developments in the European rail market”.
The London-listed firm added: “As the market opens up for competition, there are opportunities for new open access entrants with similar regulatory models to the UK.”
Open access operators set their own fares, take on all revenue risk and receive no taxpayer-funded subsidies.
Is FirstGroup about to enter international markets again?
FirstGroup has its roots in a management buyout of Grampian Transport, in 1989, by Sir Moir Lockhead.
Getting involved at any level elsewhere in Europe would be the firm’s first foray overseas since it sold its contract bus and inter-city coach services in North America a few years ago.
Since then, it has been wholly focused on its UK bus and rail operations, including Aberdeen-based First Bus.
The potential for branching out in rail was signalled in full-year results from the group.
Shares in the company fell nearly 3% today, to 164.8p, despite it reporting pre-tax losses of £24.4 million for the 53 weeks to March 30.
This is compared with profits of £128.7m a year earlier.
Revenue for the latest period came in at £4.71 billion, down slightly from £4.75bn previously.
FirstGroup said its plunge into the red was driven by charges of £146.9m after its decision to pull out of two local government pension schemes. It highlighted adjusted operating profits of £204.3m for the year to March 2024, up from £161m previously.
The firm also announced a final dividend of 4p per share, taking the full-year total to 5.5p, and said it returned £118m to investors via buyback programmes during 2023-24.
First Bus racked up 1.14 million passenger journeys and 167m service miles a day in the latest period, generating total revenue of about £1bn – up from £902.5m the year before. Despite ongoing inflationary pressures, adjusted operating profits increased by £25.2m to £83.6m
First Rail delivered 274m passenger journeys and total revenue of £3.74bn, down from £3.89bn previously, in 2023-24.
Chief executive Graham Sutherland said: “We have made considerable progress in our financial and operational performance in FY 2024 as we continue to transform and grow our leading First Bus and First Rail businesses.
“This is testament to the resilience and capability of our people across the group, and leaves us well positioned to grow and create further value for all our stakeholders.”
He added: “Our focus remains on working with government and all our stakeholders to deliver for our customers and drive modal shift. We will continue to lead in environmental and social sustainability, including building out our adjacent electrification opportunities in First Bus, and investing to grow and diversify our portfolio to ensure our business remains profitable and resilient in the long-term.”
FirstGroup’s UK-wide bus and rail operations
First Bus is one of the largest regional bus operators in the UK, serving two-thirds of the 15 largest conurbations. The division employs about 12,800 people across its route network and 51 depots.
First Rail, with 17,500 employees, accounts for about 24% of all UK train services.
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