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All across the Great Western territory => Buses and other ways to travel => Topic started by: southwest on July 09, 2020, 01:27:30 pm



Title: First Group - Over £100 million loss!
Post by: southwest on July 09, 2020, 01:27:30 pm
https://www.businesstraveller.com/business-travel/2020/07/08/first-group-could-cease-trading/

First Group has lost over £100 million following Coronavirus, pushing it further into serious financial trouble. The newspapers are overhyping it but if First Group did collapse how likely is a government bailout?  Would it be cheaper to prop up First Group rather than having to bring 4 rail franchises plus numerous bus companies into public ownership.


Title: Re: First Group - Over £100 million loss!
Post by: LiskeardRich on July 09, 2020, 02:39:28 pm
Another misrepresented article.
The loss is nothing to do with covid. It’s a write off against the American business that is currently being sold.
U.K. bus and rail are both profitable and cited as the main focus going forward In the report to stock exchange.
The report says They have £850m cash in hand, enough to last several years with no additional income.

The report did cite worse case scenario if there isn’t a pick up following covid by April 2022 When funding runs out it could become unviable to continue.


Title: Re: First Group - Over £100 million loss!
Post by: southwest on July 09, 2020, 04:16:25 pm
Another misrepresented article.
The loss is nothing to do with covid. It’s a write off against the American business that is currently being sold.
U.K. bus and rail are both profitable and cited as the main focus going forward In the report to stock exchange.
The report says They have £850m cash in hand, enough to last several years with no additional income.

The report did cite worse case scenario if there isn’t a pick up following covid by April 2022 When funding runs out it could become unviable to continue.

BBC Spotlight said the same thing last night though, and said it was down to Covid?


Title: Re: First Group - Over £100 million loss!
Post by: LiskeardRich on July 09, 2020, 06:34:26 pm
Another misrepresented article.
The loss is nothing to do with covid. It’s a write off against the American business that is currently being sold.
U.K. bus and rail are both profitable and cited as the main focus going forward In the report to stock exchange.
The report says They have £850m cash in hand, enough to last several years with no additional income.

The report did cite worse case scenario if there isn’t a pick up following covid by April 2022 When funding runs out it could become unviable to continue.

BBC Spotlight said the same thing last night though, and said it was down to Covid?

That’s because they haven’t bothered actually doing a journalists job or don’t understand what they are researching. The coronavirus bit was small change in the grand scheme

Quote
Statutory operating loss of £(152.7)m (2019: profit of £9.8m) and statutory EPS of (27.0)p (2019: (5.5)p) include the Greyhound impairment charge of £186.9m (of which £124.4m was in the first half), North American self-insurance provision of £141.3m, restructuring and reorganisation costs of £58.2m, and coronavirus-related charges of £21.5m

Read the actual company release rather than the media’s inability to report fairly and accurately https://otp.tools.investis.com/clients/uk/first_group/rns/regulatory-story.aspx?cid=858&newsid=1401183



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