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.
Subscribe to 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.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”