Off the buses

FirstGroup planning to sell its UK business

TRANSPORT giant FirstGroup wants to get shot of its entire bus business in the UK.

The firm is looking at options, including a possible sale or tie-up.

FirstGroup is one of the UK’s largest bus operators, running around a fifth of services outside London, including in 40 of the biggest towns and cities.

Its 5,800 buses here carry 1.6 million passengers a day and employs 16,500 people.

But FirstGroup confirmed it was considering “structural alternatives” for the division after caving in to pressure from a big US investor to break itself up.

Boss Matthew Gregory said it would focus on its US arm, including First Student which has 1,100 contracts to take pupils to and from school on 44,000 buses.

It also wants to sell Greyhound, the iconic US coach firm it bought in 2007.

Bobby Morton, national officer for passenger transport at the Unite union, said: “I want to make it crystal clear that Unite won’t tolerate one single job loss or any attack on our members’ terms and conditions as a result of this selloff process.

“This is a slap in the face to the dedication that our members show on a daily basis in all the weathers that the British climate can throw at them.”

FirstGroup also raised questions about whether it would bid for future UK rail franchises.

It operates Great Western Railway, South Western Railway and TransPennine Express, but warned of the “risk and rewards” in the sector. It is waiting for the outcome of the Government’s review into the rail industry.

The bus shake-up was announced alongside FirstGroup’s annual results. They showed revenues rose 11.4% to £7.1billion, of which nearly £2.7bn was from its rail arm, and £2.9bn from the two US bus divisions it is focusing on.

UK bus arm revenue dipped 0.4% to £876m but profit leapt from £50.2m to £65.8m, giving it the second best margin in the group.