First Group PLC has announced its preliminary results for the year to March 2016.
The transport company's operating profit was maintained despite a smaller rail portfolio and a challenging trading environment.
Other key results include:
- Solid progress made in the year to position the Group for future growth and higher returns
- Contract portfolio enhanced with TransPennine Express rail award and other wins across the Group
- Wolfhart Hauser appointed as Chairman and Matthew Gregory joined as CFO in the year
- Continued disciplined bidding and cost efficiencies, as well as lower fuel costs and additional First Student operating days expected to result in strong progress for the Group in the year ahead
- Significantly increased cash generation expected in 2016/17
Tim O'Toole, Chief Executive, First Group, said: "Overall we have made encouraging progress this year toward a profile of more consistent financial returns for the Group. As we indicated at the start of the year, a smaller rail franchise portfolio and fewer operating days in our school bus business were factors that would make delivering headline growth this year challenging. However, by being flexible with our plans we have delivered a comparable adjusted operating profit to last year and a net cash inflow ahead of our expectations.
"The Group expects to make strong progress in the year ahead despite a challenging trading environment in several of our markets. This will come from our continued focus on disciplined contract bidding and rigorous cost efficiency programmes, as well as lower fuel costs and more First Student operating days compared with the year just ended. Following several years of reinvestment we expect to deliver a significant increase in net cash generation. Overall, we expect the considerable efforts of our people in recent years to be reflected in a significant improvement in our profile of sustainable returns and cash generation going forward."