FirstGroup's Greyhound exits key market

FirstGroup's Greyhound exits key market

As the proliferation of cheap flights makes long-distance coach travel unappealing, FirstGroup's (FGP) Greyhound bus service continues to suffer. In May, former chief executive Tim O’Toole said the transport group would take a "new approach" to this part of the business, with a full external review already under way. But, six months later, a £28.5m charge relating to Greyhound's exit from Western Canada has further damaged half-year profitability. But new chief executive Matthew Gregory said now the "loss-making" Canadian operation has closed, Greyhound’s performance should improve. In the meantime, disposal proceeds from bus station properties there could also help make up some of the shortfall.

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