FirstGroup plc has announced its half-yearly results for the six months to 30th September 2016.
Overall trading in the first half has been consistent with the Group's expectation of good progress in the current year, recognising likely currency tailwinds but an uncertain UK macroeconomic backdrop. First half cash performance supports their objective to significantly increase free cash generation for the 2016/17 financial year.
The Group reported revenue of +5.1% with First Student and First Transit growth and favourable currency translation, offset by route remapping and end of subsidy on TPE and lower Greyhound and First Bus demand.
Favourable currency translation of North American profits were offset by higher dollar-based UK fuel costs in the first half; however the second half-weighted profile of First Student earnings will result in positive net impact for the full year if recent currency trends continue.
Robust First Student bid season with 7.3% average price increases and solid contract retention; margin improved in the period and well positioned for the full year following a successful school year start up.
Greyhound like-for-like revenue decreased 3.9% as competing transport modes benefited from cheaper fuel; resilient margin performance from cost control and growing benefits of our business model changes and First Bus like-for-like4 passenger revenue decreased by 1.3% as a result of ongoing industry-wide demand challenges; cost actions partially mitigated the impact of currency fluctuations on fuel.
Tim O'Toole, Chief Executive, FirstGroup, said: "Our overall trading performance as outlined at the start of the financial year continued during the first half, with encouraging performances by our North American business partially offset by tough trading conditions for our UK bus and rail operations.
"In the second half we will benefit from our normal seasonal bias as well as our ongoing focus on executing our strategy.
"We continue to expect good progress for the Group in the current year, recognising we will likely benefit from currency tailwinds from our substantial North American operations but will also face uncertain economic conditions in the UK for the foreseeable future. Our cash performance in the first half affirms our confidence in generating significantly increased cash flow for the full year."