FirstGroup (LSE:FGP) PLC said current trading is in line with its expectations and that passengers are returning to travel following the easing of pandemic restrictions.
Passenger volumes in its First Bus division are now at 70% of the level seen before the COVID-19 pandemic struck. In England, passenger volumes have risen to 75% of 2020 levels following the lifting of restrictions, the transport company said in a trading statement.
“Although the restrictions implemented by government as a response to the omicron variant temporarily reduced demand levels, we are encouraged by the improving passenger volume trends subsequently,” FirstGroup (LSE:FGP) said.
The reductions in mileage experienced by the bus division in some areas have now started to ease as the number of employees self-isolating because of coronavirus has reduced in recent weeks.
Meanwhile, First Bus’s business-to-business segment is meeting expectations with new contracts signed since December and a growing pipeline of opportunities, the company said.
In the First Rail business, management fee-based operations are also trading in line with expectations, while the performance of its open access operations is slightly ahead of forecasts.
FirstGroup (LSE:FGP) said its management of Greyhound legacy assets and liabilities is ahead of plan, with most of the insurance de-risking now completed and further property disposals achieved.
It recently concluded a reinsurance risk transfer agreement that de-risks around US$147mln of Greyhound's legacy self-insurance reserves with a subsidiary of Randall & Quilter Investment Holdings Ltd, a leading non-life global speciality insurance company.
The cost of the agreement to FirstGroup is slightly better than budgeted for, thereby reducing its exposure to Greyhound's legacy self-insurance liabilities to US$19mln.
It has also completed a further three Greyhound property sales for US$32mln.
The company said it is now ahead of plan to realise the previously guided US$155mln in net value from the legacy Greyhound assets and liabilities during full-year 2023 and beyond.
Shares rose 1.52% to 100.50p in early trade.