FirstGroup records £290.9m loss
FirstGroup has reported a loss of £290.9 million for the year ending March 31, having recorded a £116.1m profit the previous year.
Revenue increased from £5.6 billion in 2017 to £6.4bn in 2018, but an increase in operating costs by 22.8% to £6.5bn led to an operating loss of £196.2m.
Revenue from FirstGroup’s rail division increased from £1.2bn in 2017 to £1.9bn in 2018, reflecting the inclusion of the South Western Railway franchise in August 2017. This led to an adjusted operating profit of £57.8m, representing a margin of 2.9%.
FirstGroup says it is providing for losses of up £106.3m over the remaining life of the TransPennine Express contract, based on a slowdown in the rate of growth in the financial assumptions made in its bid.
We've read it in: International Railway Journal, July 2019, p15
