Having already completed a substantial rights issue and scrapped its dividend, FirstGroup's (FGP) "transformation plan" now takes centre stage. And there were improvements during the first half when underlying operating profit jumped 10 per cent to £110m.
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First Student almost doubled profit to £11m at a 1.7 per cent margin and UK buses, where margin eased to 3.5 per cent, actually grew like-for-like revenue slightly. Cheaper fares and promotions are clearly working, especially in the north of England where bus volume grew almost 8 per cent. Rail profit steamed 38 per cent higher, offsetting a drop in bus profit after a series of disposals, and ongoing weakness at the Greyhound coach operation.
