FirstGroup swings to first-half loss on pension charges

In the 27 weeks to 30 September, adjusted operating profit rose to £100.6m from £66.1m in the same period a year earlier, and adjusted earnings per share came in at 8.1p, up from 4.6p.

However, the company swung to a pre-tax loss of £68.4m from a profit of £8.7m in the same period a year earlier. FirstGroup explained that in September, First Bus ended a period of consultation with regards to its two local government pension funds, which it subsequently terminated its participation in at the end of October. Employees were moved to another plan.

Adjusting charges of £142.3m relating to the settlement charge and other costs relating to the termination were recognised during the period.

FirstGroup declared an interim dividend of 1.5p a share, up from 0.9p.

Revenue from continuing operations was little changed at £2.207bn, with First Bus revenue up 18% to £504.9m, mainly thanks to strong passenger volumes, service improvements and positive pricing impact. This was partly offset by lower receipts from government funding.

Meanwhile, First Rail saw increased revenue across its open access and additional services businesses, but this was more than offset by lower revenue in its management-fee based operations.

Chief executive Graham Sutherland said: "I am pleased to report another set of very strong results for the first half of our 2024 financial year. First Bus is delivering sustainable revenue growth as we continue to transform the business and our First Rail division also performed well. This is testament to the capabilities and continued hard work of all our teams across the group.

"We are a resilient and profitable business which is well-positioned to create long-term, value-accretive growth. Leveraging our leading positions in bus and rail, supported by our strong balance sheet enables us to continue to play a critical role in supporting governments' economic, societal and environmental goals."

At 1300 GMT, FirstGroup shares were down 3.4% at 169p.