Firstgroup plc reported trading results for the third quarter of 2016. For the quarter, the company reported group revenues in the third quarter decreased by 9.5% on a constant currency basis, principally reflecting: changes to the rail franchise portfolio, and the number of First Student operating days this year due to the timing of school calendar. Excluding these previously announced effects, Group revenues increased by 0.9% in constant currency in the period. Continued progress of the transformation plans in the third quarter was mitigated by a challenging trading environment: First Bus revenues affected by lower than forecast high street retail footfall with exceptionally wet weather and flooding in some markets, and First Student experienced higher costs related to acute driver shortages in certain locations as a result of the tightening US employment market.

For the year 2016, the Management's outlook for operating profit in the current financial year is slightly lowered by trading in the period. Confident that the transformation plans continue to improve underlying performance and will drive sustainable cash generation over the medium term as planned and Awarded TransPennine Express rail franchise in December, increasing duration of First Rail portfolio to at least 2023. The company continues to expect underlying net cash flow for the current year to be broadly flat.