Bus and train group FirstGroup PLC (LSE:FGP) rose 4% as it unveiled a new £50 million share buyback alongside an upgrade to full-year forecasts forecast for its full year.
Graham Sutherland said the group expected bus margins to improve as it continues to expand its presence through bolt-on acquisitions while the growth of its privately-run UK open-access rail operations will help the rail arm beat expectations.
FirstGroup will lose its rail franchise contracts when the government carries out its plans to renationalise the UK’s railways.
Earnings in 2026 should also be maintained, added the statement, due to First Bus and open rail growth.
Adjusted revenue rose 2% to £649 million in the six months to 28 September 2024 with profits down slightly at £70.7 million and a dividend of 1.7p (1.5p).
Shares added 6.7p to 143.5p.