FirstGroup PLC on Thursday said it swung to a loss in its first half of the financial year due to a pension charge, but backed its full-year expectations as it eyes continued growth.

The Aberdeen-based transport company swung to a pretax loss of £68.5 million in the six months to September 30 from a profit of £37.0 million a year ago, due to a £142.3 million pension charge.

Total operating costs grew marginally by 4.7% to £2.25 billion from £2.15 billion the previous year.

Revenue dipped to £2.21 billion from £2.22 billion the year prior, but the company credited its First Bus business, which saw revenue soar by 77% to £504.9 million from £427.7 million the year before, due to an increase in passenger volumes.

FirstGroup upped its interim dividend by 67% to 1.5 pence per share from 0.9p per share in the first half of financial 2023.

Looking ahead, FirstGroup said its trading and outlook are in line with its full-year expectations.

It expects to reach an adjusted net cash position of £20 million to £30 million by March 31 next year. Group adjusted operating profit, meanwhile, should be around £14 million to £20 million higher than anticipated, with adjusted attributable profit around £7 million to £10 million higher.

Chief Executive Officer Graham Sutherland said: ‘We are a resilient and profitable business which is well-positioned to create long-term, value-accretive growth. Leveraging our leading positions in bus and rail, supported by our strong balance sheet enables us to continue to play a critical role in supporting governments’ economic, societal and environmental goals.’

Shares in FirstGroup were down 4.7% at 166.70 pence each in London on Thursday morning.

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