FirstGroup has cut its net cash-generation forecasts for 2012 from £150m to £100m-£115m and its bus operations outside the south of England are labouring. That’s put its share price under pressure and overshadowed better news elsewhere.
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While it is disappointing to see asset sales affected by the economic and regulatory climate, much of the business is doing well. Recovery in the US school bus business remained on track during the third quarter, a popular premium coach service steered passenger revenue growth to 5.9 per cent at Greyhound, and, in UK Bus, decent growth in the south fuelled a 1.8 per cent increase overall. Rail, meanwhile, grew 8 per cent as volumes held up despite last year’s fares hike.
