FirstGroup Reports an Increase In Profits, Sending its Shares 1.51% Higher

  • Operating profit rose to £226.8m, compared to £220.2m in 2021
  • Revenue declined to £5.58bn compared to £6.84bn a year earlier
  • Progressive annual dividends to begin with final dividend of 1.1p per share 

Another day, another earnings report. 

And this time, it’s from multi-national transport services business FirstGroup. The company reported full-year earnings, so it’s time to dive into its financial highlights.

So, what has caused FirstGroup to gain 1.51% on Tuesday morning?

The transport company reported an increase in profits after a recovery in passenger numbers. Operating profit rose to £226.8 million, compared to £220.2 million the prior year, surpassing expectations. 

Enough to satisfy shareholders, it seems.

Profit was aided by the sale of its US Greyhound coach business. However, total revenue declined to £5.58 billion compared to £6.84 billion a year earlier. 

Although luckily for FirstGroup, it seems it was not enough to worry investors.

“We have delivered on our commitments this year to refocus the business, de-risk the balance sheet and unlock value for shareholders,” said Executive Chairman David Martin.

Martin believes FirstGroup is well placed to “invest in the services our passengers want” while continuing its path to achieve “a zero-emission bus fleet.”

Meanwhile, FirstGroup will have pleased investors after announcing progressive annual dividends, which will begin with a final dividend of 1.1p per share payable in August.

When it comes to FirstGroups’ outlook for FY23, it said despite uncertainty around the pandemic and economic backdrop, the company expects trading to align with expectations and make significant progress during the year…

FirstGroup’s passenger volume, which recently reached 76% of the equivalent 2019 period, is expected to continue to increase with performance weighted to H2 2023.