FirstGroup plc (LON:FGP) provided an update on trading since its half year results published in November 2024, in respect of the financial year ended 29 March 2025.
First Bus
The division delivered further revenue growth in H2 2025 with yield management and the contribution of recent acquisitions more than offsetting a reduction in funding.
Following the introduction in January 2025 of the £3 fare cap in England, replacing the prior £2 cap, the division introduced a clear and simple distance-based fare structure with resulting yield increases outpacing a slight decline in passenger volumes. For the full year, the Group anticipates passenger volume growth of c.2% vs. FY 2024 (excluding the extra week in FY 2024).
The £90m acquisition of RATP London completed on 28 February 2025 and the integration of the business, now renamed First Bus London, is progressing well. The Group generated revenue of c.£23m from First Bus London in the final month of FY 2025. As previously announced, as the route contract portfolio evolves over the coming years, the Group anticipates annual revenues to grow to £300-350m with operating margins in line with historical London levels of c.6-7%.
First Rail
Trading in the division is ahead of expectations as the Group anticipates higher than previously forecast full year variable fees from the DfT-contracted Train Operating Companies. The team is supporting the Government as the DfT prepares to take over the operation of South Western Railway on 25 May 2025.
The division’s open access operations continue to perform well, reflecting strong demand, effective yield management and continued high levels of customer satisfaction. We have acquired track access rights for two new open access services and signed a £500m agreement to lease 14 new UK-manufactured trains, to facilitate the growth of our open access operations.
Financial Guidance
Reflecting the stronger financial performance in First Rail and in-line performance at First Bus, the Group anticipates that its FY 2025 adjusted operating profit and adjusted earnings per share will be ahead of the Group’s previous expectations.
The Group’s balance sheet remains strong and due mainly to the timing of electric vehicle deliveries in First Bus, the Group now expects to end FY 2025 with an adjusted net debt position of c.£85-90m. This is lower than its previous expectations despite completing the £50m share buyback programme faster than initially anticipated.
The Group continues to anticipate that it will maintain its adjusted EPS in FY 2026.
Graham Sutherland, FirstGroup Chief Executive Officer, commented:
“We have continued our strong financial and operational delivery in the second half of our financial year and have committed significant capital to further grow and diversify our portfolio. In First Bus, we have entered the London market at scale and continued to extend our reach across the UK. In First Rail, we have agreements in place to double the size of our open access operations with potential to go much further.”
Notice of FY 2025 Results
FirstGroup will report its results for the year ended 29 March 2025 on 10 June 2025.
