FirstGroup appoints chief executive

Scottish transport giant FirstGroup has appointed a new chief executive as it revealed widening half-year losses and warned over earnings in its rail division.

The group, behind strike-hit line South Western Railway, said interim chief operating officer Matthew Gregory had taken on the top job with immediate effect.

His appointment comes after former boss Tim O’Toole resigned abruptly in May following results showing the group swung to a mammoth full-year loss.

Executive chairman Wolfhart Hauser had taken over at the helm after Mr O’Toole’s departure, but will now revert back to his non-executive chairman role.

Details of the change at the top came as FirstGroup reported interim pre-tax losses widening to £4.6 million in the six months to September 30 from £1.9m a year earlier due to restructuring and reorganisation costs from the withdrawal of Greyhound services in Western Canada.

But revenues rose 19.2% to £3.3 billion and on an underlying and constant currency basis, FirstGroup saw pre-tax profits jump 63.4% to £42m, while earnings lifted 9.2% to £92.4m.

FirstGroup said its rail arm would see annual underlying operating profits fall year-on-year. Half-year underlying rail earnings dropped 5.8% to £29.3m.

FirstGroup shares rose 8.30p to close at 87.95p

A FirstGroup bus.