FirstGroup Plc. (FGP.L,FGROF.PK,FGROY.PK), in its trading update for the first quarter period from 1 April to 30 June 2013, said that overall trading was in line with management's expectations.
The company said, in First Student, that its recovery plan is on track and as it implements a more efficient operating model and uniform practices across the division it expects margins for the first half of the year to be ahead of the equivalent period last year. The company said it is on track to achieve a retention rate of approximately 90%, with a focus on winning or retaining only those contracts that meet its returns criteria.
The company said that First Transit has won new business throughout the last year totalling more than $130 million worth of revenue, including ten conversion contracts.
In Greyhound, like-for-like revenue for the period reduced by 6.1% compared to the same period last year.
In UK Bus division,like-for-like passenger revenue increased by 1.4% during the period.
The company said that UK Rail division delivered further solid performance during the period with like-for-like passenger revenue increased by 5.5%.
Tim O'Toole, Chief Executive said, "Trading during the period was in line with our expectations. While we continue to see challenging conditions in some of our markets, there is considerable long term opportunity across the Group and particularly from our recovery programmes in First Student and UK Bus. While there remains significant work to do, our confidence increases as we see the results of our actions taken to date."
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by RTT Staff Writer
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