FirstGroup plc
Annual Report and Accounts 2024
Introduction | Strategic report | Governance report | Financial statements |
We are FirstGroup
FirstGroup is a leading private sector provider of public transport. We provide easy and convenient mobility, improving quality of life by connecting people and communities. Our services are a vital part of society, transporting customers for business, education, health, social and leisure purposes. Our businesses are
at the heart of our communities, and the services
we provide also support the delivery of wider economic, social and environmental goals.
Introduction
- FY 2024 highlights
- At a glance
Strategic report
- Chairman's statement
- How our markets work
- Our business model
- Chief Executive Officer's review
- Chief Executive Officer's Q&A
- Our strategic framework
- Key performance indicators
- Business review
- Financial review
- Responsible business
- Climate-relatedfinancial disclosures
- Risk management
- Viability and going concern
- Our stakeholders
- Section 172 statement
FirstGroup Annual Report and Accounts 2024
Governance report
- Corporate Governance report
- Governance at a glance
106 Board
- Nomination Committee report
- Audit Committee report
- Responsible Business Committee report
- Remuneration Committee report
158 Directors' report and additional disclosures
161 Statement of Directors' responsibilities
Financial statements
- Independent auditor's report
- Consolidated income statement
- Consolidated statement of comprehensive income
- Consolidated balance sheet
- Consolidated statement of changes in equity
- Consolidated cash flow statement
177 Notes to the consolidated financial statements
- Group financial summary
- Company balance sheet
- Company statement of changes in equity
256 Notes to the Company financial statements
- Shareholder information
- Glossary
Introduction | Strategic report | Governance report | Financial statements |
Highlights of the year
Material increase in Group profit driven by continued progress in both
First Bus and First Rail further underpinning the Group's strong balance sheet.
FirstGroup Annual Report and Accounts 2024 | 1 |
Successful execution of the Group's strategy
Read more on page 17
We have made considerable progress in our financial
Continued focus on operational delivery and driving modal shift
-
First Bus on track to achieve
10% adjusted operating profit margin having grown
to 9.4% in H2 2024 - West Coast Partnership awarded National Rail Contract to October 2032 with core three-year term
- Lumo has now carried more than 2.5m passengers since October 2021 launch and added 14% more capacity over the last year
Enhancing the Group's sustainability credentials and accelerating decarbonisation in First Bus
- Landmark strategic joint venture with Hitachi, Green Hire Purchase Finance Facility and successful applications for £16m ZEBRA 2 co-funding during the year
- c.300 electric buses delivered in FY 2024 and more than 300 charger outlets installed
- Great Western Railway conducting industry-firstfast-charge battery-only train trial
- FirstGroup joined United Nations Global Compact and First Bus achieved Real Living Wage employer status
Further growth and diversification of the Group's portfolio
- York Pullman acquisition and new Adjacent Services contracts in First Bus
- Formal applications submitted for two new open access operations, the extension of some of Lumo's services to Glasgow, and for additional paths on Hull Trains and Lumo
- First Rail awarded TfL London Cable Car contract and qualified to bid for Elizabeth Line contract
and operational performance in FY 2024 as we continue to transform and grow our leading First Bus and First Rail businesses. This is testament
to the resilience and capability of our people across the Group and leaves us well positioned to grow and create further value for all our stakeholders.
Graham Sutherland
Chief Executive Officer
Introduction | Strategic report | Governance report | Financial statements | FirstGroup Annual Report and Accounts 2024 | 2 |
Highlights of the year continued
Financial highlights
Group revenue | Dividend per share |
Continuing operations | 5.5p |
£4,715.1m | FY 2023: 3.8p |
FY 2023: £4,755.0 |
Performance summary
FY 2024 (£m) | FY 2023 1(£m) | |||||
Cont. | Disc. | Total | Cont. | Disc. | Total | |
Revenue | 4,715.1 | - | 4,715.1 | 4,755.0 | 4.0 | 4,759.0 |
Adjusted1 operating profit/(loss) | 204.3 | (1.9) | 202.4 | 161.0 | (6.6) | 154.4 |
Adjusted operating profit margin | 4.3% | 4.3% | 3.4% | 3.2% | ||
Adjusted profit/(loss) before tax | 139.0 | (2.2) | 136.8 | 104.2 | (6.3) | 97.9 |
Adjusted EPS2 | 16.7p | (0.3)p | 16.4p | 10.9p | (0.9)p | 11.6p |
Dividend per share | 5.5p | 3.8p | ||||
Adjusted net cash3 | 64.1 | 109.9 |
Group adjusted operating profit
Continuing operations
£204.3m
FY 2023: £161.0m
Significant increase in Group adjusted operating profit to £204.3m (FY 2023: £161.0m) includes extra week
of trading and receipt of higher than accrued FY 2023 variable fees in First Rail (c.£13m)
Share buyback
Continuing operations
c.£117.6m
c.£117.6m returned to shareholders via buyback programmes in FY 2024 (£19.3m remains to be completed as at 10 June 2024)
Statutory
FY 2024 (£m) | FY 2023 (£m) | |||||
Statutory | Cont. | Disc. | Total | Cont. | Disc. | Total |
Revenue | 4,715.1 | - | 4,715.1 | 4,755.0 | 4.0 | 4,759.0 |
LGPS pension settlement and | (146.9) | - | (146.9) | |||
related charges | - | - | - | |||
Other operating (costs)/income | (4,521.7) | (5.3) | (4,527.0) | (4,601.1) | 27.3 | (4,573.8) |
Operating profit/(loss) | 46.5 | (5.3) | 41.2 | 153.9 | 31.3 | 185.2 |
(Loss)/profit before tax | (24.4) | 128.7 | ||||
Total comprehensive income/ | 49.0 | |||||
(loss) for the period | (7.4) | |||||
EPS2 | (2.4)p | 11.8p | ||||
Net debt | 1,144.8 | 1,269.1 |
Adjusted earnings per share | Adjusted year end net cash |
Continuing operations | Continuing operations |
16.7p | £64.1m |
FY 2023: 11.6p | FY 2023: £109.9m |
Adjusted EPS of 16.7p (FY 2023: 11.6p) | Strong balance sheet position |
enhanced by repurchases of 80.6m shares | |
during FY 2024 |
- Bonds, bank and other debt
net of (cash) | (313.7) | (479.5) |
- IFRS 16 lease liabilities | 1,458.5 | 1,748.6 |
'Cont.' refers to the Continuing operations comprising First Bus, First Rail, and Group items. 'Disc.' refers to discontinued operations, being First Student, First Transit and Greyhound US.
- 'Adjusted earnings' are shown before net adjusting items and excludes IFRS 16 impacts in First Rail management fee operations. For definitions of alternative performance measures and other key terms, see the definitions section on page 262.
- 'Adjusted EPS' and EPS based on weighted average number of shares in the period of 662.9m (FY 2023: 739.8m) reflecting the current year and prior year share buybacks.
- 'Adjusted net cash' comprises bonds, bank and other debt net of free cash (i.e. excludes IFRS 16 lease liabilities and ring-fenced cash).
FY 2024 statutory operating loss before tax of £(24.4)m includes predominantly non-cash charges of £146.9m relating to the Group's termination of its participation in two Local Government Pension Schemes during the period with an offsetting £161.0m gain in the Condensed Consolidated Statement of Comprehensive Income.
Introduction | Strategic report |
FirstGroup
Who we are
FirstGroup is a leading private sector provider of public transport. We have
a diverse portfolio of businesses including bus, rail, coach and tram operations that provide easy and convenient mobility, improving quality of life by connecting people and communities.
Our purpose
We provide efficient, reliable, safe and increasingly sustainable transport links that connect communities, and our services are critical to ensuring local economies are vibrant and robust.
Our strategy
FirstGroup's four strategic pillars will support us to drive value and sustainable growth and lead the way in our sector.
Read more on page 17
Business split
Revenue | Adjusted operating |
(as % of Group) | profit (as % of Group) |
First Bus | 21% | First Bus | 37% | ||||
First Rail | 79% | First Rail | 63% | ||||
Governance report | Financial statements | FirstGroup Annual Report and Accounts 2024 | 3 | |||||||
Find out more about | ||||||||||
First Bus | First Rail | FirstGroup online | ||||||||
First Bus is one of the largest regional bus | First Rail is one of the largest UK operators for | Avanti West Coast (Avanti) | ||||||||
companies in the UK, carrying more than a million | nearly three decades, with experience in running | |||||||||
passengers a day. We serve more than 20% of the | all types of passenger rail services. We have | Great Western Railway (GWR) | ||||||||
population in the UK with our local bus services. | a track record of working successfully with a | South Western Railway (SWR) | ||||||||
We are a leading operator in the majority of our | wide range of partners under various types of | Hull Trains | ||||||||
local areas, including major urban centres such | contracts, as well as delivering significant rail | Lumo | ||||||||
as Glasgow, Bristol and Leeds. As well as | infrastructure projects. We have three Department | First Bus operations | ||||||||
commercial networks, we also run buses on | for Transport (DfT)-contracted operations: West | |||||||||
behalf of organisations ranging from schools | Coast Partnership (WCP) which includes Avanti | |||||||||
to distribution centres and major | West Coast (Avanti), Great Western Railway | |||||||||
construction sites. | (GWR), South Western Railway (SWR), and two | |||||||||
Read more on page 34 | open access operations: Hull Trains and Lumo. | |||||||||
We operate London Trams on behalf of Transport | ||||||||||
1.14m | c.4,800 | |||||||||
for London (TfL) and Heathrow Express (HEX) | ||||||||||
on behalf of Heathrow Airport. | ||||||||||
passenger | buses | Read more on page 37 | ||||||||
750,300 | c.3,700 | |||||||||
journeys a day | ||||||||||
50 | c.13,500 | passenger | locomotives and | |||||||
depots | employees | journeys a day | rail carriages | Aberdeen | ||||||
404 | c.15,500 | |||||||||
Approximate First Bus market share | Glasgow | Edinburgh | ||||||||
of UK market outside of London (%) | stations | employees |
Passenger revenue base | ||||||||||||
of First Rail operations (%) | ||||||||||||
Newcastle | ||||||||||||
Belfast | ||||||||||||
First Bus | 20% | Bradford | York | |||||||||
Others | 80% | Hull | ||||||||||
Galway | Dublin | Leeds | ||||||||||
Manchester | ||||||||||||
Leisure | 63% | Sheffield | ||||||||||
Business | 18% | Crewe | Stoke-on-Trent | |||||||||
Commuter | 19% | Leicester | Norwich | |||||||||
Worcester | Birmingham | |||||||||||
Cork | Ipswich | |||||||||||
Oxford | ||||||||||||
glance | Swansea | |||||||||||
At a | Slough | Chelmsford | ||||||||||
Cardiff | Bristol | London | Basildon | |||||||||
Weston-super-Mare | Bath | |||||||||||
Southampton | ||||||||||||
Weymouth | Portsmouth | |||||||||||
Penzance | Truro | Plymouth | ||||||||||
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Firstgroup plc published this content on 26 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 June 2024 15:26:00 UTC.