The transport company FirstGroup (LON:FGP) experienced a shift to a pre-tax loss of £68.4 million for the half-year ending in September, primarily due to substantial pension plan adjustment charges. Despite this setback, the firm reported an increase in adjusted pre-tax profit from £32.9 million to £71.3 million, excluding these one-off costs, signaling underlying financial health and commitment to expanding revenue and environmental objectives.
Graham Sutherland, the CEO of FirstGroup, highlighted the company's robust performance in the face of pension-related losses. The adjusted operating profit soared to £100.6 million and earnings per share increased to 8.1 pence. These achievements came even as the company faced a pre-tax loss stemming from pension settlement costs.
In the period between late September and the end of October, FirstGroup completed consultations leading to its withdrawal from two local government pension schemes. This move resulted in adjustment charges totaling £142.3 million and involved transitioning affected staff to a different pension plan.
Today, FirstGroup maintained its revenue at £2.207 billion, with its First Bus division reporting a notable 18% increase in revenue to £504.9 million. This boost was attributed to higher passenger volumes and service improvements, although it was partially offset by a decrease in government funding receipts. Amidst these developments, the company announced an increased interim dividend of 1.5 pence per share, even as its shares fell by 3.4% at midday UTC to close at 169 pence.
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