The turnaround of stricken transport operator FirstGroup (FGP) is starting to bear fruit. Even so, chairman John McFarlane said the most important developments "have yet to manifest themselves", and investors should look forward to an even stronger second half, when the group "earns the majority of its profit".
Overall, the half-year numbers held few surprises for investors. The end of government subsidies for the First Great Western and First Capital Connect franchises and a reduction in payments for the First ScotRail line hit the top line. But exclude these items and revenues grew 3.9 per cent. Adjusted operating profit rose 2.4 per cent to £104m, and - stripping out certain one-off charges and gains on property disposals - pre-tax profits jumped 70 per cent to £33.3m.