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FirstGroup Plc posted a better-than-expected annual operating profit and proposed an additional share buyback programme on Thursday, helped by higher passenger levels in its buses on the back of a government scheme to cap fares.
The British transport operator launched an additional buyback of shares worth 115 million pounds (USD 143.09 million) following proceeds from exiting the North American market.
A government scheme in England to cap bus fares at 2 pounds lifted demand at a time when British transport operators were seen struggling to get passengers back onto buses and trains. Since the Covid-19 pandemic, lifestyles changed and more people now work from home or shop online instead of going into towns.
This increase signifies the growing demand for air travel within the country, said Jyotiraditya M. Scindia, the Union Minister of Civil Aviation, adding India is now the third-largest domestic aviation market. The minister was presenting a report card on the achievements by the ministry in the nine years led by PM Modi.
The Aberdeen-headquartered group, which operates both buses and trains in the UK, said despite the challenging economic and industrial relations backdrop, current trading and its outlook for 2024 were in line with expectations. The group said its adjusted operating profit for the year ended March 25 came in at 161 million pounds (USD 200.32 million), compared with 106.7 million pounds logged a year ago.
Analysts on average had forecast an adjusted operating profit of 149.1 million pounds, according to a company-compiled consensus.
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