FirstGroup revenue rises

FirstGroup’s full-year revenues for the year to March 31 2020 rose from £7.12 billion to £7.75bn.

However, the operator recorded a statutory operating loss of £152.7 million, which it blames on North American self-insurance provision, Greyhound impairment charges, restructuring and reorganisation costs, and Coronavirus-related charges.

In its rail division, likefor-like passenger revenue increased by 0.2%, but “strong performance” on Great Western Railway and Avanti West Coast was offset by challenges on TransPennine Express and

South Western Railway. Chief Executive Matthew Gregory said: “SWR’s performance continued to be challenged principally by deep-rooted Network Rail infrastructure problems outside of our control, as well as protracted and unnecessary industrial action by the RMT.”

First Rail made an adjusted operating profit of £68.9m

(up £0.1m compared with the previous year), although with revenues rising from £2.6bn to £3.18bn, the operating margin fell from 2.6% to 2.2%

FirstGroup says there is uncertainty about the level of future passenger demand and revenue growth. For accountancy purposes, it is assuming the Emergency Measures Agreements or similar structures remain in place until the end of its franchises.