Sounds like that guy might get his wish after all. I cant remember this name, the one who wanted to split the company in two.
Thomas Sandell (Sandell Asset Management)
--- old post above --- --- new post below ---
FGP trading update doesn't seem that bad. 
Trading Statement
FIRSTGROUP PLC - Trading Statement
PR Newswire
London, April 1
2 April 2014
FIRSTGROUP PLC
PRE-CLOSE TRADING UPDATE
FirstGroup plc ("FirstGroup" or the "Group") reports the following update on
trading for its financial year ended 31 March 2014 ("the period" or "the
year"), ahead of preliminary results due to be announced on 21 May 2014.
Summary
Overall operating profit in line with expectations for the year, excluding
£14m impact of unprecedented weather conditions on First Student and Greyhound
in the fourth quarter
First Student progressing plans to improve contract portfolio pricing,
returns and deliver further cost savings
First Transit maintains its record of growth and margin performance
Greyhound - underlying improvement in demand and profitable expansion of
Greyhound Express continues
UK Bus - transformation plan progressing and delivering sustainable
improvements in key metrics
UK Rail delivering solid revenue growth underpinned by continued passenger
volume increases
As previously indicated, net cash flow expected to be broadly flat for the
year (excluding the proceeds of the rights issue)
First Student
First Student's performance was adversely impacted by the abnormal weather
conditions which swept across North America from December and continued into
March. US Dollar revenue is expected to be reduced by 1.8% for the year as
widespread snow storms, coupled with record low temperatures, led to an
unprecedented amount of school closures. Most of our operations were affected
with over 4,000 school days lost across 75% of our territory, and we incurred
higher associated operating costs. As a consequence, our operating margin for
the year is expected to be approximately 1% below the levels previously
indicated in our Q3 interim management statement. As detailed at our investor
day in January, we are working through our programme to meet our medium term
targets, which includes addressing contract portfolio pricing, focusing on
higher returning opportunities and driving further cost efficiencies through
the business.
First Transit
First Transit delivered another year of strong trading, with like-for like US
Dollar revenue growth expected to be over 7% and margins in line with
expectations. Our strong credentials and expertise in delivering efficiencies
for customers continue to be rewarded with new business wins and a contract
retention rate of around 95%.
Greyhound
Greyhound's overall US Dollar revenue is expected to be 2.9% lower for the
year, reflecting the impact of severe weather which caused significant
disruption to the network. Excluding weather, like-for-like revenue in the
fourth quarter of the financial year is expected to be approximately 2.1%
higher, in part reflecting modestly improving economic conditions. Greyhound
Express continues to perform well with anticipated like-for-like revenue
increasing by over 10% for the year. We are on track with our investment
programme, which will transform our offering principally through greater yield
management, real-time pricing and more consumer friendly ticketing. This
focused investment, together with the continued growth of our successful
point-to-point products, gives us confidence in achieving our medium term
margin target of 12%.
UK Bus
Like-for-like passenger revenue growth is expected to be 1.8% for the year,
with good passenger volume growth. This encouraging performance is despite the
continued challenges posed by economic conditions in some of our local markets.
We continue with our step-by-step plan to reposition the business through
network design and fares structure improvements, further cost optimisation, and
investment in fleets and technology. Over the medium term, this repositioning
will allow us to raise margins to double digit levels. We were pleased to
receive validation by Passenger Focus of our efforts to improve the quality and
value-for-money of our services in their recent survey of bus passengers across
the UK.
UK Rail
UK Rail continued to perform well during the year, with like-for-like passenger
revenue expected to increase by 5.9%, underpinned by continued strong volume
growth across all of our train operating companies. We worked closely with our
industry partners to mitigate the effects of severe weather and flooding on
parts of our network and ensure that services resumed as quickly as possible.
In March, the Department for Transport commenced a review in respect of a
longer direct award with First Great Western, to cover the significant
programme of works taking place across the network over the coming years.
Exceptional items
The Group has reviewed its treatment of exceptional items, in particular costs
associated with UK Rail bids and certain property disposals. As a result, we
will include these items in our measure of underlying results in the financial
statements for the year ended 31 March 2014.
Commenting, Tim O'Toole, Chief Executive said:
"We have made satisfactory progress on our key priorities in the year, with
good performances in four of our divisions partially offset by slower progress
in First Student, where we have a detailed programme underway to reposition the
contract portfolio, increase returns and drive further cost efficiencies. We
will deliver earnings growth this year, albeit suppressed by the historically
severe weather, particularly in North America. We are broadly on track to
achieve our medium term targets and while we are encouraged by the progress
made so far, there remains a significant amount of work ahead. Our priorities
are clear and plans are underway to build on our market-leading positions and
ensure the Group delivers sustainable cash generation and value creation over
the plan period and beyond."
as discussed in a earlier thread.
