FirstGroup Plc. (FGP.L) Thursday said overall trading for the Group during the third quarter of the current financial year has been in line with management's expectations.
In an interim management statement for the period from October 1 to December 31, 2011, the company said that during the period, First Student's performance continued to develop in line with its expectations. Operating margin for the second half of this current financial year is expected to be broadly in line with the same period last year.
In First Transit, trading continues in line with expectations amid renewal of contracts and new business wins.
Revenue growth accelerated in line with expectations in Greyhound, with like-for-like passenger revenue increasing 5.9 percent during the period. Greyhound Express continues to perform well and is expanding the service from the south east hub in Atlanta to new markets in Florida including Jacksonville, Orlando, Tampa, Miami and Fort Lauderdale. In Canada, the business is on track to deliver its profit recovery plan.
In the UK Bus business, like-for-like passenger revenue increased by 1.8 percent, amid weak economic environment, particularly in Scotland and the North of England. The company is achieving lower growth rates in these areas as it sees a widening north-south divide.
The rail division delivered a strong performance with like-for-like passenger revenue increase of 8.0 percent. The company intends to bid for the Thameslink and Great Western franchises.
The company said it remains focused on cash generation to support capital investment, debt
reduction and dividend growth of 7 percent, in line with our current commitment.
"Notwithstanding current trading in line with our expectations, we now expect net cash generation to be in the range of £100m to £115m for 2011/12 due to fewer disposals as a result of the economic and regulatory climate affecting the realisation of appropriate value and timing," FirstGroup added.
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