FirstGroup PLC (LSE:FGP), the rail transport group, posted a statutory loss before tax of £24.4 million in its latest financial year, mainly due to a £146.9 million hit related to the termination of its participation in two Local Government pension schemes.
First Bus revenue increased to more than £1 billion from £902.5 million in 2023, driven by higher passenger volumes, while operating profit rose to £83.6 million, up from £58.4 million the previous year.
Management said the division, which owns multiple bus companies across the country, remains on track to achieve a 10% adjusted operating profit margin by the second half of 2025.
FirstGroup revealed it has committed to significant investment in the electrification of its buses, aiming for a zero-emission fleet by 2035.
First Rail, which owns franchises such as South Western Railway and TransPennine Express, also grew over the year, with adjusted operating profit increasing to £105.6 million from £93.3 million.
Graham Sutherland, CEO, said: "We will continue to lead in environmental and social sustainability, including building out our adjacent electrification opportunities in First Bus, and investing to grow and diversify our portfolio to ensure our business remains profitable and resilient in the long term.”
FirstGroup proposed a final dividend of 4.0p per share, bringing the total annual dividend to 5.5p per share, a 45% increase from the previous year.