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Author Topic: First Group Annual Results  (Read 351 times)
Bus_Lady
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« on: July 08, 2020, 11:26:03 am »

First Group annual results have bee published today with the announcement of a £300 million loss...the losses are staggering...and this is even before the start of the financial implications of Coronavirus really kicks in!

However, the good news is that UK Bus made £45m in pre-tax profits!

What will the future hold now for First Group? Do you think the UK bus division will be up for sale again? Will more less profitable bus routes go to other bus operators.... What may change for the First train network? Any update on the America Greyhound services being sold off? What do you think the future holds for First Group?

A couple of news articles on the topic.

FirstGroup suffers £300m loss on Covid-19 and Greyhound business  https://www.ft.com/content/c794895b-afc8-4bc7-ba62-59049926a617

FirstGroup could cease trading as coronavirus hits passenger levels
https://www.theguardian.com/business/2020/jul/08/firstgroup-could-cease-trading-as-coronavirus-hits-passenger-levels

First Bus losses treble before impact of coronavirus kicks in. https://www.insider.co.uk/company-results-forecasts/first-bus-losses-treble-before-22319348
https://www.insider.co.uk/company-results-forecasts/first-bus-losses-treble-before-22319348
« Last Edit: July 08, 2020, 03:59:43 pm by Bus_Lady » Logged
grahame
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« Reply #1 on: July 08, 2020, 09:02:28 pm »

Thanks for those extra links.  From The Guardian article:

Quote
FirstGroup, the UK’s largest bus company and operator of rail franchises including Avanti West Coast and Great Western Railway, has admitted it may not be able to continue trading because of the impact of the coronavirus on its business.

The company said on Wednesday there was “a material uncertainty” that may cast significant doubt on its continuing ability to operate, as it reported losses of just under £300m for the year to the end of March.

FirstGroup’s chief executive, Matthew Gregory, said: “Despite the near-term uncertainty, the long-term fundamentals of our businesses remain sound.”

However, FirstGroup shares closed down more than 20% on Wednesday. The company’s share price has declined by more than two-thirds since February.

and

Quote
In the UK, First has shared in additional government funding of £3.5bn to rail operators and £400m to bus firms, shielding them from lost revenue.

The firm said its Great Western and new Avanti West Coast franchises had performed strongly last year – if not the TransPennine and SouthWestern services, whose collapse had been widely anticipated before franchises were suspended in March.

The reported £294.6m losses came despite a 9% leap in revenue in the 12 months to March 2020, before the start of the pandemic, with writedowns due to issues with insurance in North America and losses on its Greyhound intercity coach service in the US.
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LiskeardRich
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« Reply #2 on: July 08, 2020, 09:13:30 pm »

It’s worth reading the company statement and not the guardians carefully selected quotes.
The losses all related to write downs on American businesses which they are looking to dispose of. It implied they will retain and focus on U.K. bus and rail
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grahame
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« Reply #3 on: July 08, 2020, 09:24:41 pm »

It’s worth reading the company statement and not the guardians carefully selected quotes.
The losses all related to write downs on American businesses which they are looking to dispose of. It implied they will retain and focus on U.K. bus and rail

Agreed.  Though things that have been running at a loss in the UK have been slashed, even where there was a multi-year development plan that was working ... because of a requirement from the CEO named in the quotes to improve the group bottom line.
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LiskeardRich
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« Reply #4 on: July 08, 2020, 11:14:45 pm »

U.K. bus turned a 46m profit, U.K. rail turned a modest profit (Write downs  we’re made against projected losses in 18/19)
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