LNW-GW Joint
Veteran Member
They have made a provision of £102.1 million for losses at SWR (70% share, the remainder lies with MTR).
Generally uncertain forecast for rail revenues, unsure of revenue growth even with new capacity.
Greyhound is to be sold, Bus UK is being separated out as a standalone business.
First will be more cautious with rail franchises as they see the risks outweighing the benefits.
It begs the question as to whether it would accept a new contract (eg West Coast Partnership) on the terms it has bid.
Meanwhile, it all depends on the outcome of the Williams review.
Full details and financial results here: https://www.firstgroupplc.com/investors/results-centre.aspx
Generally uncertain forecast for rail revenues, unsure of revenue growth even with new capacity.
Greyhound is to be sold, Bus UK is being separated out as a standalone business.
First will be more cautious with rail franchises as they see the risks outweighing the benefits.
It begs the question as to whether it would accept a new contract (eg West Coast Partnership) on the terms it has bid.
Meanwhile, it all depends on the outcome of the Williams review.
Full details and financial results here: https://www.firstgroupplc.com/investors/results-centre.aspx
“Although our UK rail franchise portfolio has generated £330.9m5 in adjusted profit with net cash and dividends to the Group over the last five years, we have concerns with the current balance of risk and reward being offered. We await the outcome of the Williams review as it seeks to address these and other industry issues. Any future commitments to UK rail will need to have an appropriate balance of potential risks and rewards for our shareholders