Transport giant First Group said trading was “in line” with expectations in the half year as performance of the firm’s bus businesses “largely offset” the impact of losing a number of UK rail franchises.
The Aberdeen-based group, which runs 6,300 buses in 40 regional towns and cities, said UK bus passenger revenues lifted more than 2% in the first half.
Despite running fewer train franchises, a 7% growth in like-for like train sales was stronger than expected.
Analysts said the figures were boosted by passengers who spent £4.5million travelling to Weston-super-Mare to visit Dismaland, an art installation by street artist Banksy.
First Group’s UK rail arm has suffered a string of disappointments lately, including losing the battle to run east coast intercity services from Aberdeen and Inverness to London.
It also lost its Caledonian Sleeper services to Serco and failed to retain the ScotRail franchise it had held for 10 years
Chief Executive Tim O’Toole said: “For the full year, we expect the progress of our non-rail businesses to largely offset the reduced size of our UK Rail franchise portfolio compared with the prior year, and remain confident that our multi-year transformation plans will achieve our medium term goal of sustainable cash generation from improved margins.”