First Group FGP

FIRSTGROUP PLC

post-close trading update

FirstGroup plc (the ‘Group’) today provides 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

The Group will report its results for the year ended 29 March 2025 on 10 June 2025.

Forward-looking statements

Certain statements included or incorporated by reference within this document may constitute ‘forward-looking statements’ with respect to the business, strategy and plans of the Group and our current goals, assumptions and expectations relating to our future financial condition, performance and results. By their nature, forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that cause actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. No statement in this document should be construed as a profit forecast for any period. Shareholders are cautioned not to place undue reliance on the forward-looking statements. Except as required by the UK Listing Rules and applicable law, the Group does not undertake any obligation to update or change any forward-looking statements to reflect events occurring after the date of this document.

Notes

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR 6 Annex 1R: 3.1.

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With £4.7 billion in revenue and around 30,000 employees, we transported almost 2m passengers a day in FY 2024. We create solutions that reduce complexity, making travel smoother and life easier. Our businesses are at the heart of our communities and the essential services we provide are critical to delivering wider economic, social and environmental goals. Each of our divisions is a leader in its field: First Bus is one of the largest bus operators in the UK, serving more than 25% of the population in the UK with a fleet of over 5,750 buses, and carrying more than a million passengers a day. First Rail is one of the UK’s largest rail operators, with many years of experience running long-distance, commuter, regional and sleeper rail services. We operate a fleet of c.3,700 locomotives and rail carriages through three DfT contracted train operating companies: WCP (incorporating Avanti West Coast and West Coast Partnership Development), GWR and SWR) and two open access routes (Hull Trains and Lumo). We are formally committed to operating a zero-emission First Bus fleet by 2035, and First Rail will help support the UK Government’s goal to remove all diesel-only trains from service by 2040. During FY 2024 FirstGroup was named as one of the world’s cleanest 200 public companies for the fifth consecutive year and achieved Industry Top-Rated status for the first time with Sustainalytics. We provide easy and convenient mobility, improving quality of life by connecting people and communities. Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on X.