Weather woes hit transport operator

● Aberdeen-based Firstgroup also outlines impact from US tax reform

growth, with a strong start to the academic year for its student-focused services, positive passenger take-up of new contactless payment options and other “network and fare optimisation actions” across the division.

Like-for-like passenger volumes at First Bus nudged up 0.1 per cent in the period.

The group added: “We are delivering improving margins from our cost efficiency actions and continue to target our investment plans on local markets where our stakeholders are supportive of successful bus services.”

On the US tax changes, Firstgroup said: “The group notes that the Tax Cuts and Jobs Act signed into law at the end of 2017 reduces the US federal corporate income tax rate from 35 per cent to 21 per cent.

“The ultimate impact of this change can only be determined once certain complex provisions in the Act are clarified, but we anticipate that the group’s effective tax rate will reduce to a mid-20s percentage in the current financial year, and that there will be no substantive impact on our expected cash tax payments.

“The deferred tax assets and liabilities will be remeasured in light of the Act and the noncash impact of that exercise will be reflected in the balance sheet at year end.”