FirstGroup PLC on Thursday said it is on track to surpass its own expectations for the current financial year as it noted sound demand for bus and train travel.
The Aberdeen-based public transport provider said it swung to a pretax profit of £76.1 million in the financial half-year that ended on September 28, from a loss of £68.4 million a year prior.
Revenue climbed 6.2% to £2.34 billion from £2.21 billion.
FirstGroup upped its interim dividend by 13% to 1.7 pence per share from 1.5p a year ago.
Further, it announced a new up to £50 million share buyback programme.
Looking ahead, FirstGroup said it is currently trading ahead of its own expectations for the current financial year running to the end of March, as it anticipated further progress for First Bus, driven by operational improvements.
Chief Executive Officer Graham Sutherland said: ‘We have reported a robust set of results for the first half of our 2025 financial year and are on course to make further progress in the second half, reinforcing our strong track record for delivery. As a major bus and rail operator in the UK we have a critical role to play in supporting the country’s wider economic, social and environmental goals. We will continue to take a proactive approach, demonstrating our strengths as an experienced, trusted partner in public transport.’
Looking ahead, he said: ‘There is no doubt that our businesses will change over the next few years, but our core strategy around operational excellence, encouraging modal shift and leading in environmental and social sustainability will underpin everything that we do. Furthermore, we have considerable growth opportunities which puts FirstGroup in a strong position. We will continue to invest, with strict discipline, to grow and diversify our portfolio and maintain our earnings trajectory as well as remaining focused on delivering potential further capital returns to shareholders.
FirstGroup added it was well positioned to manage through measures announced in the recent UK government budget, citing the 50% increase in the bus fare cap in England to £3 from January, from £2 before, and the impact of increases in employers’ national insurance.
‘We believe that the £3 cap will still protect the majority of our customers from the largest increases back to uncapped fares, and in turn, protect the passenger volume uplifts we have seen on these routes. We are currently reviewing our pricing strategy ahead of the introduction of the £3 cap,’ the company said.
FirstGroup shares rose 2.3% to 140.00 pence each on Thursday morning in London.
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