FirstGroup PLC (LSE:FGP) said on Friday it anticipates profits for the financial year ending 25 March 2023 to be ahead of previous expectations following strong trading in its bus and rail operations.
In a statement, the FTSE 250-listed firm said the improved performance at First Bus was driven by higher passenger volumes in the second half of the financial year and driver resource pressures easing in certain locations.
Bus passenger volumes have increased to 83% of 2020 equivalent levels, with commercial and concessionary volumes at 87% and 75% respectively. The increase in demand has partially resulted from the £2 bus fare cap scheme introduced in England in January 2023, the company said.
First Rail open access operations benefited from stronger-than-anticipated passenger demand over the winter months, FirstGroup added.
As a result, FirstGroup expects 2023 adjusted operating profit and adjusted attributable profit will be ahead of previous expectations. Company compiled consensus estimates for adjusted operating profit and adjusted attributable profit are currently £137.4mln and £58.6mln respectively.
Expectations for the financial year 2024 remain unchanged.
FirstGroup said the final earnout consideration from the sale of First Transit by EQT Infrastructure is anticipated later in 2023.