UK: Trading in FirstGroup’s First Rail division has been slightly ahead of expectations due to strong performance at the open access businesses, the company said in a pre-close trading update.
The announcement on March 12 covers the period since the half year results were published on November 23 2023.
FirstGroup said open access operators Hull Trains and Lumo have benefited from continued strong demand, effective yield management and the settlement of certain one-off infrastructure and other claims during the period.
In January 2024 it submitted the first phase of an application for a new open access service between London and Sheffield as part of its Hull Trains business. The Office of Rail & Road’s consultation with industry partners has concluded, and FirstGroup said capacity and performance modelling is now underway, and it is in discussions with rolling stock companies. It anticipates that services could begin in the second half of the 2025 calendar year.
Discussions are also in progress with Transport Scotland and Network Rail for the extension of some Lumo services to Glasgow from the second half of 2025.
A partnership of FirstGroup and Keolis has been shortlisted for the contract to operate the Elizabeth Line on behalf of Transport for London. FirstGroup said ’we look forward to submitting a compelling bid which demonstrates our collective experience of running metro and heavy rail systems’.
Trading in the First Bus division was ’strong and in line with the group’s expectations’.
FirstGroup anticipates that its FY2024 adjusted operating profit and adjusted earnings will be slightly ahead of the board’s previous expectations.
‘Our focus on operational delivery, driving demand for our services and growing and diversifying our portfolio has resulted in further progress in the second half of our financial year’, said CEO Graham Sutherland.
‘This leaves us well positioned to create further sustainable value for all our stakeholders.’
