First Group merge Yorkshire bus operations in cost-cutting drive

May 14 2009 by Henryk Zientek, Huddersfield Daily Examiner

The decline in earnings reflects lower revenues from its franchises, which include the First TransPennine Express service running through Huddersfield, First Great Western, First ScotRail and London commuter service First Capital Connect.

First Group’s UK bus operations, which have 9,000 vehicles and a 23% market share, lifted revenues by 7% on operating profits 9.8% higher at £134m.

The North American business, which operates 60,000 yellow school buses and the Greyhound inter-city coach service, generated revenues of £2.87bn and saw profits increase by 72.5% to £294.6m.

First Group announced in March plans to cut costs by more than £200m across its UK operations by the end of March, 2010 – but provided no details of job losses.

At the time, it said the cuts would make it “more robust” in the current difficult trading climate.

Commenting on its latest results, chief executive Sir Moir Lockhead said the group’s mix of businesses meant it was well-placed to ride out the downturn.

He added: “While it is still early in the new financial year, overall the group has continued to trade well and broadly in line with our expectations.”