FirstGroup chief executive Tim O’Toole said yesterday the Aberdeen-based transport giant was on the road to recovery after a first-half trading performance which is in line with expectations.
Foundations had been laid for a more “robust” company, he said, adding: “We intend to continue the hard work and relentless focus that is needed to improve our operating performance, deliver enhanced growth and drive sustainable returns over the medium-term.”
His comments came as First, which suffered a shareholder revolt at its last annual meeting after a slump in annual profits and a controversial rights issue, delivered a trading update for the six months to September 30.
First said its UK bus transformation plan was on track, while its rail division delivered “further solid passenger revenue growth”.
Across the Atlantic, the group said it was continuing to make progress in “reforming the model” of its First Student business, which operates school buses throughout North America.
Mr O’Toole said: “I am pleased to report overall trading for the first half of the year is in line with our expectations, despite continued economic headwinds in some of our markets.
“While it is still early days, we are on track with our plans to return the group to a position of strength.”
He added: “We have a fundamentally attractive portfolio of market-leading transport businesses, and our unrivalled scale and breadth gives us significant opportunities to share best practice and expertise, to deliver outstanding services to our customers and to create long-term, sustainable value for our shareholders.”
First said first-half results were likely to show like-for-like UK bus and rail revenues grew by 1.6% and 5.7%, compared with a year ago.
Meanwhile, a 23-month extension to the group’s First Great Western rail franchise was announced by the UK Government yesterday.
The company will continue operating the services, linking London Paddington to the Cotswolds, south Wales and south-west England, until September 2015.
Lawyers have warned that Channel Tunnel train firm Eurostar could face conflict-of-interest issues over its planned bid to run intercity east coast services between Scotland and London.
It is thought Eurostar and bid partner Keolis, who are likely to face competition from First for the east coast franchise, could be vulnerable to allegations of favouritism because they are largely state-funded.