FirstGroup Share Price Fell 4.5% on Its Fiscal 2024 H1 Results

The FirstGroup plc (LON: FGP) share price fell 4.5% at 9:55 GMT after the company released its H1 fiscal 2024 financial results. The transport company reported that profit growth has been a prominent feature in the company's financial performance, driven by strong showings from both First Bus and First Rail segments. 

The group's adjusted operating profit has surged to an impressive £100.6 million, marking a significant increase compared to the £66.1 million recorded in H1 2023. Adjusted Earnings Per Share (EPS) for continuing operations have also shown remarkable improvement, reaching 8.1p, as opposed to the 4.6p reported in H1 2023.

Shareholders can rejoice as the declared interim dividend has been raised to 1.5p per share, a notable uptick from the 0.9p per share declared in H1 2023. During H1 2024, approximately £67 million has been returned to shareholders through the company's share buyback program.

The period concluded with the company boasting adjusted net cash of £77.1 million, underlining its strong financial position.

The company's strategic focus remains centred on various key aspects, including First Bus, which has continued its impressive performance, achieving further margin expansion, with H1 2024 recording a margin of 7.1%, rising from 4.8% in H1 2023 and 6.5% in FY 2023.

An ambitious plan is underway to introduce over 600 electric buses, install more than 600 charger heads, and establish four fully electric depots in England by March 2024, marking a significant commitment to sustainable and environmentally friendly transportation solutions.

The West Coast Partnership has been awarded a nine-year National Rail Contract, reflecting an enhancement in rail service quality. The company has also entered into a strategic decarbonisation joint venture with Hitachi, amounting to a substantial £100 million investment.

FirstGroup CEO Graham Sutherland said: “I am pleased to report another set of very strong results for the first half of our 2024 financial year. First Bus is delivering sustainable revenue growth as we continue to transform the business, and our First Rail division also performed well. This is a testament to the capabilities and continued hard work of all our teams across the Group. We are a resilient and profitable business which is well-positioned to create long-term, value-accretive growth.”

FirstGroup share price. 

The FistGroup share price fell 4.49% to trade at 167.10p from Wednesday’s closing price of 174.95p.