First Group: General Discussion

[Volvodart]

This looks to have been put out by Coast to shore up their vote. If investors are unhappy about it if Coast lose, they can voice their unhappiness in the votes for the board in a couple of weeks at the AGM.

 

[TheGrandWazoo]

It's only the prospect of something happening that had been driving the share price higher recently, even that seems to have fizzled out. Longer term I personally think they should retain First Student / Transit & UK Bus, ditch Greyhound & exit UK Rail asap / possibly even sell (Trenitalia was rumoured to be interested at one point). Reduced debt to a level where they can invest in UK Bus & grow through bolt-on acquisitions & acquisitions in new markets.

The board would be mad to sign up to open ended pension liabilities, there's just not enough profit in rail to cover that level of exposure. Stagecoach did the right thing by not signing on the dotted line to take on the risk, it will be interesting to see the outcome of their Court action. Stagecoach overall are a better managed group and typically react far quicker to change / go for the exit much earlier when things go against them.

This week looks set to be interesting week for the big 2 transport groups.

Wasn’t talking about the share price per se but the ability to realise value from the group.

 

[Volvodart]

There is going to be all the eggs in one basket problem and Firstgroup have never run the US businesses well.

 

[trainbow]

CityAM this morning.

 

[winston270twm]

There is going to be all the eggs in one basket problem and Firstgroup have never run the US businesses well.

That's why I'm thinking First need to retain both US & UK bus (i.e. their two main sources of profit), then eventually start looking elsewhere to grow a third division either in Europe or elsewhere.

 

[TheGrandWazoo]

CityAM this morning.

Some rather unprofessional mudslinging by Rasteh, questioning the impartiality of Matthew Gregory's brother.

That's why I'm thinking First need to retain both US & UK bus (i.e. their two main sources of profit), then eventually start looking elsewhere to grow a third division either in Europe or elsewhere.

Perhaps in time but they have to fight off CC (if they can) and then sort out the conscious uncoupling of UK Bus and sell off Greyhound. That's gonna take time and, to be honest, Stagecoach are even more exposed in that respect.

 

[winston270twm]

Perhaps in time but they have to fight off CC (if they can) and then sort out the conscious uncoupling of UK Bus and sell off Greyhound. That's gonna take time and, to be honest, Stagecoach are even more exposed in that respect.

I'm not so sure they should uncouple UK Bus or US ops, I'm of the opinion they should sell Greyhound including any property owned + look to exit UK rail through a sale. Use proceeds to repair pension back hole & bring down debt.

 

[TheGrandWazoo]

I'm not so sure they should uncouple UK Bus or US ops, I'm of the opinion they should sell Greyhound including any property owned + look to exit UK rail through a sale. Use proceeds to repair pension back hole & bring down debt.

I think we all have our own take on what should perhaps happen, or indeed, what might happen.

I did expect a US/UK separation and, like you, don't think the future of UK Rail is particularly rosy. In the past, it has been a good market to be in, if not massive margins. The government are trying to offload the pensions liabilities whilst trying to screw the margin down further. Of their three rail franchises - one is returning good figures (GWR) and one was retained based on trying to have the upside on all their assumptions (TPE) whereas the reality is they are now propping it up. SWR was won on the basis of continued commuter growth but that's now stalled, if only because of engineering constraints and delays in that being alleviated. If the reports are true that they are in pole position on West Coast, then there are genuine questions on what basis. After all, if Stagecoach have been excluded on certain grounds around pensions, then those conditions must apply to First. As for a sale of UK Rail.... what would anyone be buying?

UK Bus is cash generative and increasingly profitable, though helped by pushing out fleet replacement. Nonetheless, they do seem to have got most of the OpCos into a better state financially through improved efficiencies, and there is the argument as to whether a UK Bus operation unshackled from the group might not be able to kick on further. The lack of capital to invest (in other than places like Cornwall, Leeds, Glasgow and Bristol) means that the other operations are now reliant on cascades.

 

[winston270twm]

I think we all have our own take on what should perhaps happen, or indeed, what might happen.

I did expect a US/UK separation and, like you, don't think the future of UK Rail is particularly rosy. In the past, it has been a good market to be in, if not massive margins. The government are trying to offload the pensions liabilities whilst trying to screw the margin down further. Of their three rail franchises - one is returning good figures (GWR) and one was retained based on trying to have the upside on all their assumptions (TPE) whereas the reality is they are now propping it up. SWR was won on the basis of continued commuter growth but that's now stalled, if only because of engineering constraints and delays in that being alleviated. If the reports are true that they are in pole position on West Coast, then there are genuine questions on what basis. After all, if Stagecoach have been excluded on certain grounds around pensions, then those conditions must apply to First. As for a sale of UK Rail.... what would anyone be buying?

UK Bus is cash generative and increasingly profitable, though helped by pushing out fleet replacement. Nonetheless, they do seem to have got most of the OpCos into a better state financially through improved efficiencies, and there is the argument as to whether a UK Bus operation unshackled from the group might not be able to kick on further. The lack of capital to invest (in other than places like Cornwall, Leeds, Glasgow and Bristol) means that the other operations are now reliant on cascades.

A UK / US separation is all well and good, but First need to maintain control of the majority of those businesses for their revenue & profit streams, those are what will potentially provide them with a future to trade out of the mire. Should they end up with a large amount of cash following a large disposal, they will be forced to consume most of it to pay down debt, fill pension back holes & return the rest to shareholders as a special dividend etc, thus end up like Stagecoach with a smaller business. As for WCML, if First are still in the running, it suggests they're prepared to sign up to the Governments T&C's re: unknown pension liabilities, we all know the first time around they also bid high to try & win it from Virgin. I would just offload it to any of the State rail operators that are prepared to take it on, I personally don't see what they see if UK Rail being so attractive.

Forgot to reply earlier: Re: Stagecoach (+ Souter Investments), I believe something is going on in the background, they both seem seems to be making disposals / generating cash & potentially positioning themselves, I don't think Stagecoach will be just a UK bus business for long, whether it be something to involve breaking up Arriva / buying European parts or potentially even merge with another group like NX.

It ultimately depends what they could raise through a Greyhound business + property sale & whether a new entrant / existing operator of UK Rail could be courted to take on Firsts UK Rail portfolio & what it could raise???

 

[Jordan Adam]

It appears the FirstGroup website has went down.

Edit: And as quick as i posted that it's back online...

 

[winston270twm]

It appears the FirstGroup website has went down.

Edit: And as quick as i posted that it's back online...

It's back now, someone's put some money in the meter.....

 

[TheGrandWazoo]

A UK / US separation is all well and good, but First need to maintain control of the majority of those businesses for their revenue & profit streams, those are what will potentially provide them with a future to trade out of the mire. Should they end up with a large amount of cash following a large disposal, they will be forced to consume most of it to pay down debt, fill pension back holes & return the rest to shareholders as a special dividend etc, thus end up like Stagecoach with a smaller business. As for WCML, if First are still in the running, it suggests they're prepared to sign up to the Governments T&C's re: unknown pension liabilities, we all know the first time around they also bid high to try & win it from Virgin. I would just offload it to any of the State rail operators that are prepared to take it on, I personally don't see what they see if UK Rail being so attractive.

Forgot to reply earlier: Re: Stagecoach (+ Souter Investments), I believe something is going on in the background, they both seem seems to be making disposals / generating cash & potentially positioning themselves, I don't think Stagecoach will be just a UK bus business for long, whether it be something to involve breaking up Arriva / buying European parts or potentially even merge with another group like NX.

It ultimately depends what they could raise through a Greyhound business + property sale & whether a new entrant / existing operator of UK Rail could be courted to take on Firsts UK Rail portfolio & what it could raise???

I'm with you on UK Rail not being so attractive as it once was. 20 or even 10 years ago, it was a sector in which to make money. Clearly, Stagecoach believed that there was still money to be made, otherwise they'd not have submitted bids. That they were non compliant indicates that they wouldn't do it at any price and, as you say, if First are in the running, then it suggests that they have accepted these? I guess until we find out more, then we don't know!

Were First to float UK Bus (or flog it to an interested bidder), they would be left with a UK rail business that has one good franchise in GWR and on TPE, they have already placed a provision for onerous contract conditions (as long as it doesn't get any worse). SWR is the bigger unknown. The proceeds can be used to address the pensions issues and the debt pile and you do have two US businesses that are making ok returns. Then there's Greyhound - they've already taken a massive write down on it so can they sell/dispose without any more write offs?? That's for people with a bigger salary than us to work out!!

 

[Volvodart]

There is also the structure problem of the increasing US proportion of the business. This is OK with the way exchange rates have moved since Brexit, but it could be a problem if they do go back to what they were (unlikely I know). It would probably be better to do something about it now.

 

[richw]

I'm not so sure they should uncouple UK Bus or US ops, I'm of the opinion they should sell Greyhound including any property owned + look to exit UK rail through a sale. Use proceeds to repair pension back hole & bring down debt.

You seem to be on the same line as Coast’s statement earlier today, they want UK rail gone not bus it appears!

 

[overthewater]

This come out this afternoon:
https://news.sky.com/story/firstgro...fNnfF3MYJQK_FdX512BnGGGAnPGVifg39HKiDVdO7MSsk

FirstGroup activist wins Schroders’ backing to oust chair
Two big fund managers will vote to remove the Greyhound-owner’s chairman Wolfhart Hauser, Sky News learns
By Mark Kleinman, City editor Monday 24 June 2019 14:19, UK

The activist investor demanding an overhaul of the board and strategy of FirstGroup, the train and bus operator, has been handed a massive boost on the eve of the vote by two of the City's most influential fund managers.

Sky News has learnt that Schroders, which owns just under 9% of the owner of America's Greyhound bus service, and 10% shareholder Columbia Threadneedle Investments will oppose the re-election of FirstGroup chairman Wolfhart Hauser at Tuesday's extraordinary general meeting.

The disclosure of the two fund giants' opposition to Mr Hauser represents a major fillip to Coast Capital Management, which is agitating for a clear-out of the transport company's directors and withdrawal from the UK rail market.

FirstGroup runs the South Western and TransPennine franchises, but has said it will lose more than £200m across the two operations.

Coast, which owns about 10% of FirstGroup, has become engaged in an increasingly fractious battle with the FTSE-250 company, accusing board members of wasting hundreds of millions of pounds of shareholders' money on a botched expansion.

The New York-based hedge fund has been attempting to rally support from other investors ahead of the EGM, although it refused to say on Monday who it had won support from.

Ousting the company's chairman would put many of his colleagues in untenable positions, even if others, such as the chief executive, Matthew Gregory, survive the EGM.

FirstGroup, which wants to strike a deal to run the new West Coast rail franchise, recorded revenues of more than £7bn last year, employing roughly 100,000 people.

In total, it transported 2.2 billion passengers across its various rail and bus operations last year.

Last month, the company said it would sell the Greyhound coach division and pursue a sale, demerger or joint venture at its UK bus business.

Mr Gregory insisted that his plan would enhance shareholder value, and has labelled Coast Capital's demands as "opportunistic".

"By executing the portfolio rationalisation plans we are announcing today, our future emphasis will be on First Student and First Transit, our core contracting businesses in North America.

"We see significant potential to generate long term, sustainable value and growth from the solid platforms these businesses provide in the North American mobility services sector."

Coast Capital's campaign suffered a setback last week when one of its board nominees - former Arriva boss David Martin - effectively withdrew his name from Tuesday's ballot paper.

Schroders, Columbia Threadneedle and Coast Capital Management declined to comment on their voting decisions, while FirstGroup did not respond to a request for comment.

https://www.theguardian.com/busines...backer-in-shareholder-rebellion-at-firstgroup

Coast Capital gets backer in shareholder rebellion at FirstGroup
Columbia Threadneedle has said it will back resolutions to replace board in demand for group’s exit from UK rail


A second major shareholder has joined an investor drive to eject the board of FirstGroup, as the transport group faces an emergency meeting on Tuesday that could result in Britain’s most lucrative rail franchise again slipping from its grasp.

Columbia Threadneedle said it was backing resolutions brought by activist investor Coast Capital to replace seven directors including the chairman and chief executive of the one of the UK’s biggest bus and train operators.

Columbia and Coast each own around 10% of the shares, slightly more than Schroders, which was reported by Sky News to be planning to vote against the board but has not yet confirmed its position.

The meeting comes at a crucial moment for FirstGroup as it awaits the award of the West Coast partnership franchise, which will operate intercity trains on the London-Glasgow line and help introduce the first HS2 highspeed services after 2026.

FirstGroup, backed by Italy’s state-owned Trenitalia, has been rumoured for several weeks to be the preferred bidder in a remaining shortlist of two, against a bid led by Hong King’s MTR. According to industry sources, the decision was taken within the Department for Transport last month. However, the award of the franchise has been deferred until the outcome of the Coast manoeuvres, which could potentially leave the DfT in another embarrassing franchising crisis should the board be replaced.

Coast, a New York based hedge fund, has demanded that FirstGroup exits UK rail which it has described as “extraordinarily destructive of capital”. James Rasteh of Coast has threatened to sue, and to “hold each member of management team and board member personally and fully accountable” if FirstGroup accepts any new rail franchise.

The company has made writedowns of more than £100m already on each of its last two franchise wins: TransPennine and South Western, and the size of its bid to win West Coast could further anger shareholders if it significantly exceeds MTR’s.

Legal action over the franchise is also being brought against the DfT by Stagecoach, Virgin’s partner in running the West Coast route since privatisation. Stagecoach has been seeking to overturn its disqualification from the competition for a non-compliant bid, refusing to accept pension liabilities.

FirstGroup last month indicated it might turn its back on UK rail after the expiry of its current contracts, which also include Great Western Railway and the open access operator Hull Trains. Chief executive Matthew Gregory said that the group had “concerns with the current balance of risk and reward being offered” in rail, and would await the outcome of a government-backed review of the industry.

In a strategy document issued last month, the group also announced plans to hive off its UK bus operations, and sell the famous Greyhound coach line in the US. It would retain its highly profitable US school bus businesses.

A FirstGroup spokesperson said: “Coast’s aim is to seize control of a UK plc without paying a premium. Their plans are not in the best interests of all shareholders, and would leave the company with higher debt. In contrast, we’ve set out the right strategy for the future, based on facts and up to date knowledge. We have an independent and diverse Board, with the right skills to deliver these plans at pace.’

FirstGroup has barred press from attending the emergency meeting, to be held in London on Tuesday afternoon, when the extent of the shareholder rebellion will be made clear.

A spokesman for Coast said: “Shareholders will vote as they see fit. Coast is not going away, whatever happens. If First gets the award of the West Coast capital it will destroy more capital, and there is still an AGM coming up.”

 

[winston270twm]

You seem to be on the same line as Coast’s statement earlier today, they want UK rail gone not bus it appears!

It's done NX Group no harm to drop UK Rail, quite the opposite in fact. Maybe First Group need to consider bidding for smaller European Rail Franchises as per the German Franchises that NX / Go-Ahead / Abellio operate

 

[DragonEast]

To my very simple mind the unresolved question is whether they can successfully sell or float First Bus as it is at the moment. So far what we seem to know is that, despite everything, First Group want to be free of it, and apparently Coast's "bus" nominee has decided to withdraw. Presumably they both may know things the rest of us don't?

As ever time will tell, I suppose.

 

[Goldfish62]

It's done NX Group no harm to drop UK Rail, quite the opposite in fact. Maybe First Group need to consider bidding for smaller European Rail Franchises as per the German Franchises that NX / Go-Ahead / Abellio operate

They work better because the operator has no revenue risk. They're more like the TfL model.

 

[TheGrandWazoo]

To my very simple mind the unresolved question is whether they can successfully sell or float First Bus as it is at the moment. So far what we seem to know is that, despite everything, First Group want to be free of it, and apparently Coast's "bus" nominee has decided to withdraw. Presumably they both may know things the rest of us don't?

As ever time will tell, I suppose.

Did their bus nominee withdraw?

 

[winston270twm]

Did their bus nominee withdraw?

Yep - The former Arriva CEO - David Martin has decided not to run for a seat of First's board.

Update re General Meeting
Released : 19.06.2019

FIRSTGROUP PLC

UPDATE RE GENERAL MEETING

On 11 May 2019 FirstGroup plc (“FirstGroup” or the “Company”) announced that it had received a requisition notice dated 10 May 2019 from Coast Capital to call a general meeting of the Company. The Company received a further, replacement requisition notice from Coast Capital on 17 May 2019 as the original requisition notice dated 10 May 2019 was invalid (as a result of it not being signed by the correct holder of Coast Capital’s shareholding in the Company).

Accordingly, on 4 June 2019 the Company published a circular to shareholders (the “Circular”) including notice of the requisitioned general meeting to be held at 2.00 p.m. on 25 June 2019 (the “General Meeting”).

The purpose of the General Meeting is to consider the resolutions proposed by Coast Capital to remove six of the current directors of the Company and replace them with seven of Coast Capital’s own nominees (the “Coast Nominees”).

As stated in the Circular, and acknowledged in Coast Capital’s requisition notice, in order for a person nominated by a shareholder to be eligible to be appointed as a director, the Company must receive confirmation in writing of that person’s willingness to be appointed by not less than seven days before the date of the general meeting to consider that person’s appointment.

Under the articles of association of the Company, the deadline for receipt of such written confirmations was 18 June 2019.

The Company has not received any such confirmation from one of the Coast Nominees, Mr David Martin, of his willingness to be appointed as a director of the Company.

Accordingly, that Coast Nominee, Mr Martin, is not eligible to be appointed as a director of the Company at the General Meeting. As stated in the Circular, the resolution proposing to appoint Mr Martin (resolution (j)) is therefore not valid and will not be put to the General Meeting.

Contacts at FirstGroup:

Faisal Tabbah, Head of Investor Relations

Stuart Butchers, Group Head of Communications

Tel: +44 (0) 20 7725 3354

Contacts at Brunswick PR:

Andrew Porter / Alison Lea, Tel: +44 (0) 20 7404 5959

Classification as per DTR 6 Annex 1R: 3.1. Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93.

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading provider of transport services in the UK and North America. With £7.1 billion in revenue and around 100,000 employees, we transported 2.2 billion passengers last year. Whether for business, education, health, social or recreation – we get our customers where they want to be, when they want to be there. We create solutions that reduce complexity, making travel smoother and life easier.

We provide easy and convenient mobility, improving quality of life by connecting people and communities.

Each of our five divisions is a leader in its field: In North America, First Student is the largest provider of home-to-school student transportation with a fleet of 42,500 yellow school buses, First Transit is one of the largest providers of outsourced transit management and contracting services, while Greyhound is the only nationwide operator of scheduled intercity coaches. In the UK, First Bus is one of Britain's largest bus companies with 1.6 million passengers a day, and First Rail is one of the country's largest and most experienced rail operators, carrying 345 million passengers last year.

Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on Twitter.

They work better because the operator has no revenue risk. They're more like the TfL model.

It's also the same TfL style model employed in Singapore where Go-Ahead Group have won a number of decent size contracts. There does seem lower risk opportunities globally that First could pursue going forward. ​

 

[83G/84D]

Something that was mentioned in the Aberdeen thread:-

Aberdeen City Council to assess possible First Bus bid


Aberdeen City Council is to investigate how it could make a bid to buy the First Aberdeen bus operation.

Aberdeen-based transport firm FirstGroup is looking at spinning off its UK buses arm.

A motion was passed instructing officers to contact those involved in the sale of First Aberdeen and report back on how the council might bid.

The motion, from co-leader Jenny Laing, said the city needed "high quality, affordable, reliable public transport".

• FirstGroup to sell Greyhound buses
  
  
• Shake-up of Scots bus services proposed
  
  The director of resources will now report back to the city growth and resources committee or urgent business committee about how to move forward its interest in operating a council-run bus service.

https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-48743761

 

[Jordan Adam]

Something that was mentioned in the Aberdeen thread:-





https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-48743761

I should have noted in the Aberdeen thread.. While this could lead to something, i think in reality it's just a load of hot air from a council who don't really know what they're doing or how they're going to fund things!

 

[winston270twm]

Looks like Coast's board changes have been defeated.....

Result of General Meeting
Released : 25.06.2019

FIRSTGROUP PLC

RESULT OF GENERAL MEETING

Following the General Meeting held earlier today, the results of the poll are shown in the table below and will also be available on the Company’s website shortly.

The FirstGroup Board is pleased that shareholders voted decisively against Coast Capital’s attempt to take control of the Company by defeating all of the resolutions that were put to today’s meeting, and notes that, on average, other shareholders voted more than 4 to 1 against Coast Capital’s resolutions.

The Board also notes that more than 20% of shareholders voted in favour of several resolutions against the Board’s recommendation. The Board takes seriously its responsibility to understand shareholders’ opinions and will continue to engage with our investors over the coming weeks to discuss any views they may have, as reflected in the votes on those resolutions, as part of its ongoing programme of engagement.

We welcome the support from, and engagement we have had with, our shareholders over recent weeks. The Board is confident that the clear path forward for the business that was announced on 30 May 2019 is the right strategy to deliver enhanced sustainable value to all shareholders. The Board also believes it has the right management to execute this strategy effectively and at pace. This team is committed to unlocking value for shareholders and, under Matthew Gregory’s leadership, is already delivering the operational progress and momentum that will be the foundation for FirstGroup’s future direction.

Resolution FOR AGAINST TOTAL WITHHELD
No. of Votes % of Votes No. of Votes % ofVotes No. of Votes No. of Votes
a. That Wolfhart Gunnar Hauser be and is with effect from the end of the meeting removed as a director of the Company. 297,518,781 29.33 716,798,141 70.67 1,014,316,922 2,210,603
b. That Matthew Gregory be and is with effect from the end of the meeting removed as a director of the Company. 253,698,435 25.15 755,140,465 74.85 1,008,838,900 7,688,625
c. That Imelda Mary Walsh be and is with effect from the end of the meeting removed as a director of the Company. 316,638,360 31.39 692,174,521 68.61 1,008,812,881 7,714,644
d. That Stephen William Lawrence Gunning be and is with effect from the end of the meeting removed as a director of the Company. 253,060,305 25.09 755,651,678 74.91 1,008,711,983 7,815,542
e. That James Frank Winestock be and is with effect from the end of the meeting removed as a director of the Company. 459,649,808 45.57 549,099,102 54.43 1,008,748,910 7,778,615
f. That Martha Cecilia Poulter be and is with effect from the end of the meeting removed as a director of the Company. 253,057,834 25.09 755,648,248 74.91 1,008,706,082 7,821,443
g. That any person appointed as a director of the Company since the date of the requisition (excluding for the avoidance of doubt, Ryan Mangold) of the general meeting of the Company at which this resolution is proposed, and who is not one of the persons referred to in the resolutions numbered (a) to (f) (inclusive) above, be and is with effect from the end of the meeting removed as a director of the Company. 154,783,870 15.35 853,886,788 84.65 1,008,670,658 7,856,867
h. That Steven John Norris be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 368,820,591 36.36 645,417,831 63.64 1,014,238,422 2,289,103
i. That Bob Vincent Stefanowski be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 364,142,233 35.90 650,107,292 64.10 1,014,249,525 2,278,000
j. That David Robert Martin be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). This resolution was not put to the General Meeting as the Company did
not receive confirmation from Mr David Martin of his willingness to be appointed as a director of the Company. Accordingly, Mr Martin was not eligible to be appointed as a director of the Company at the General
Meeting
k. That Jim Edward Compton be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 215,317,265 21.23 798,956,792 78.77 1,014,274,057 2,253,468
l. That Elizabeth Jill Filkin be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 154,613,429 15.24 859,673,459 84.76 1,014,286,888 2,240,637
m. That Patricia Carol Barron be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 162,532,604 16.02 851,742,620 83.98 1,014,275,224 2,252,301
n. That Uwe Rolf Doerken be and is hereby appointed as an additional director of the Company (and the maximum number of directors of the Company be increased to the extent necessary for such purpose). 364,800,967 35.97 649,435,293 64.03 1,014,236,260 2,291,265

Votes “For” and “Against” are expressed as a percentage of votes received. A “Vote withheld” is not a vote in law and is not counted in the calculation of the votes “For” and “Against” a resolution. Votes were cast for a total of 1,016,527,525 ordinary shares of 5 pence per share, representing 83.69% of the total number of votes capable of being cast at the AGM. The Company's issued share capital as at today's date is 1,214,819,144 ordinary shares and the number of votes per share is one. The Company held 157,229 shares in Treasury, which do not carry any voting rights. Each of the resolutions were proposed as ordinary resolutions.

Contacts at FirstGroup:

Faisal Tabbah, Head of Investor Relations

Stuart Butchers, Group Head of Communications

Silvana Glibota-Vigo, Deputy Company Secretary

Tel: +44 (0) 20 7725 3354

Contacts at Brunswick PR:

Andrew Porter / Alison Lea, Tel: +44 (0) 20 7404 5959

Classification as per DTR 6 Annex 1R: 3.1. Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93.

About FirstGroup

FirstGroup plc (LSE: FGP.L)is a leading provider of transport services in the UK and North America. With £7.1 billion in revenue and around 100,000 employees, we transported 2.2 billion passengers last year. Whether for business, education, health, social or recreation – we get our customers where they want to be, when they want to be there. We create solutions that reduce complexity, making travel smoother and life easier.

We provide easy and convenient mobility, improving quality of life by connecting people and communities.

Each of our five divisions is a leader in its field: In North America, First Student is the largest provider of home-to-school student transportation with a fleet of 42,500 yellow school buses, First Transit is one of the largest providers of outsourced transit management and contracting services, while Greyhound is the only nationwide operator of scheduled intercity coaches. In the UK, First Bus is one of Britain's largest bus companies with 1.6 million passengers a day, and First Rail is one of the country's largest and most experienced rail operators, carrying 345 million passengers last year.

Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on Twitter.

 

[Jordan Adam]

Also of interest...

Directorate Change
Released : 25.06.2019

FIRSTGROUP PLC
DIRECTORATE CHANGE

Having overseen the recent renewal of the Board, with six new Directors appointed in the last two years together with the new strategic direction of the Company, Wolfhart Hauser has informed the Board that he believes it would be appropriate for the Company to commence planning for his succession. Wolfhart Hauser will therefore not be standing for re-election at the AGM.

With effect from the end of the AGM on 25 July 2019, David Robbie, Senior Independent Director, will become interim Chairman of the Board and will oversee a formal and rigorous process to select a new Chairman in accordance with UK Corporate Governance Code recommendations. That process has already commenced.

Commenting, Wolfhart Hauser said:

“Having renewed the Board through the appointment of independent directors with a diverse range of skills and expertise focused on the future of mobility services and overseen the appointment of Matthew Gregory as Chief Executive and Ryan Mangold as Chief Financial Officer to drive delivery of the strategy, it is now time for me to move on. I am confident that the clear path forward laid out for the Group in our strategy announcement on 30 May is the best way to deliver enhanced sustainable value to all shareholders, and that the Board and management team will execute these plans at pace.”

https://otp.tools.investis.com/generic/regulatory-story.aspx?newsid=1302222&cid=858

 

[rj246]

It is wired the biggest shareholders are not supporting the board, so who is in behind controlling First Gp and appointing the chairman and the board members?!

 

[winston270twm]

It is wired the biggest shareholders are not supporting the board, so who is in behind controlling First Gp and appointing the chairman and the board members?!

No idea, It looks like the FGP's top 3 shareholders are now against the board, whilst the board have won this battle, they haven't yet won the war. 29% votes for is still quite significant & will keep the pressure on.

Their Chairman has decided to step down, so that may up ease some shareholders in the short term.

Coast Capital cries foul at ‘leaks’ to some but not all FirstGroup shareholders

ACTIVIST Coast Capital accused FirstGroup’s management of selectively leaking information to favoured shareholders about potential sell-offs today ahead of its attempt to topple the transport group’s board.

Coast claimed FirstGroup’s chairman Wolfhart Hauser and chief executive Matthew Gregory told some top investors that “everything is for sale at the right price” and that they were exploring the sale of its First Student US bus division with private equity investors.

In a letter released hours before the company’s emergency meeting today the New York-based hedge fund, which has a 10% stake in FirstGroup, said: “If true, it would amount to highly selective distribution of information among shareholders.”

The letter adds: “At the very least, conflicting accounts of the company’s strategy are circulating among some shareholders. At the worst, certain shareholders are being deprived of the opportunity to make strategic as well as investment decisions based on accurate information from the company (including voting decisions at today’s EGM).”

Sources close to the situation expect Coast to go to the Financial Conduct Authority with the evidence today.

FirstGroup hit back denouncing the allegations as “desperate and spurious”, adding that the claims were “baseless in fact and law”. A spokesperson said: “Coast Capital is attempting to seize control of a UK plc without paying a premium. We have asked them to provide evidence to substantiate their claims and they have not been able to provide any such evidence.


“If Coast wish to raise this matter with the appropriate regulator, they should detail the basis and source of their allegations for these to be addressed.”

Investors are due to vote today on Coast’s proposal to sack six of FirstGroup’s 11 directors and replace them with candidates including former UK transport minister Steve Norris.

Coast has been agitating for a radical restructuring of the FTSE 250 company, insisting it splits up the business and pulls out of UK rail. Votes filed in advance suggest roughly two-thirds of investors are backing FirstGroup, but yesterday institutions Columbia Threadneedle and Schroders backed Coast.

https://www.standard.co.uk/business...not-all-firstgroup-shareholders-a4175346.html

 

[overthewater]

It will be interesting to see if something comes out at 7am tomorrow morning. I doubt the broad can wait around to delay things IF it were to happen.

 

[GaryMcEwan]

It will be interesting to see if something comes out at 7am tomorrow morning. I doubt the broad can wait around to delay things IF it were to happen.

As the meeting was today, everything has been uploaded to the Stock Market this afternoon.

 

[overthewater]

As the meeting was today, everything has been uploaded to the Stock Market this afternoon.

There was talk, another Manchester depot is up for sale and an announcement was held up because of this broad room battle, who knows.

 

[winston270twm]

There was talk, another Manchester depot is up for sale and an announcement was held up because of this broad room battle, who knows.

The Board only found out they were keeping their jobs late this afternoon today, hardly likely to be announcing a sale in the morning.