FirstGroup reports 20 percent fall in profits in UK

www.firstgroup.com

Transportation firm FirstGroup has reported that its annual profits have risen by 31.7 per cent, to £200 million, with its North American business counterbalancing the performance of its UK units.

Profits at its rail businesses in the UK, including First Capital Connect, First Great Western and First ScotRail, fell by over 20 per cent.

The company remarked that its results showed “robust performance” in the current “turbulent macro-economic environment”, but added that it was certainly not immune to the global financial crisis.

For its financial year ended 31 March, the company reported pre-tax profits totalling £200 million, as compared with £151.9 million the previous year.

FirstGroup noted that its North American operating profit, including Greyhound bus services, increased by 72.5 per cent, to $483.5 million.

The Aberdeen-based transportation group said that its North American operations are largely contract-based, meaning that they are less vulnerable to the economic downturn.

It added, however, that operating profits at its UK rail division fell by 21.5 per cent, to £94.2 million, as the recession had a negative impact on its London services.

“No business can regard itself as completely immune from the global economic downturn and across the sector there will be challenges to overcome,” Sir Muir Lockhead, the chief executive of FirstGroup, said.

FirstGroup is also the largest operator of bus services in the UK.

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www.firstgroup.com