FirstGroup plummets as UK Bus flounders in the north
Transport firm FirstGroup says lower economic activity in the north of England is putting pressure on its UK Bus business but North American operations are progressing.
Transport firm FirstGroup says lower economic activity in the north of England is putting pressure on its UK Bus business but North American operations are progressing.
The group says like-for-like revenues in UK Bus, in the 12 months to the end of March, will be 1.5% ahead of 2010-2011. The North of England and Scotland however are seeing "considerably lower" growth rates and that's where 60% of revenues are generated.
This is clearly a concern for the firm, which says it will also be hit by reduced government subsidies and increased fuel costs. Margins are predicted to fall to 8% in 2012-2013.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The US school bus service, which had been struggling, is now described as "on the path to recovery" although revenues will fall 1.4% compared with the prior year.
The transit division will see revenues grow 1.5%, while Greyhound, the famous coach service, is performing "well" with revenues growing 4.2%.
UK Rail is also delivering: like-for-like revenues will rise 8.3% by the year's end says FirstGroup. It has also qualified to bid for three new rail franchises: Great Western; Thameslink; and Essex Thameside.
The warning on UK Bus, however, has really dented the stock in early trading, at 08:11 FirstGroup shares had fallen 15.7%.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyers
Rachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
-
Average Brits want to retire five years before they can – who has the widest retirement gap?
Brits are expecting to work for longer than ever but there are big disparities in the number of extra working years predicted. A small tweak could help close the gap