Overview
•Overall first half adjusted trading in line with expectations outlined at start of the financial year, with growth in Group revenue and Adjusted2 operating profit in the period
•Statutory loss before tax and reported EPS in the first half includes charges for Greyhound impairment and North American self-insurance
•Reduction in adjusted2 PBT and adjusted2 EPS and increase in net debt mainly reflect first time adoption of IFRS 16 lease accounting
•Outlook unchanged (before the effects of IFRS 16)
•Focused on value creation by all appropriate means; progressing portfolio rationalisation with a number of important steps undertaken in the period
Commenting, Chief Executive Matthew Gregory said:
“In the first half we continued to execute the clear commercial strategies in each of our divisions to ensure they deliver future progress and growth. In particular, we were pleased to have delivered another strong bid season and two complementary acquisitions in our largest business First Student, as well as the award of the West Coast Partnership to our rail venture with Trenitalia. We are, however, disappointed with the further deterioration in the US motor claims environment which has required an increase in insurance costs for our North American businesses. As ever, first half trading mainly reflects the highly seasonal nature of the Group’s operations, given the timing of the North American school holidays in our First Student business. Based on current trends and underpinned by our activities to reduce the cost base further, we are confident in delivering our trading expectations for the full year.
“We are focused on rationalising our portfolio and are progressing through the detailed work to prepare for separation. We have taken a number of important steps since our announcement in May including the sale process for Greyhound, future UK Bus pension scheme funding and the strengthening of our Rail portfolio. We are intent on realising value for shareholders and will actively manage our entire portfolio by all appropriate means. We look forward to reporting on further progress in the second half.”
https://www.investegate.co.uk/firstgrou ... 0000P42FA/
The news hasn't gone down well, with the share down over 20% as I type.
Ian.