First Group (FGP) swung to an operating loss of £153m in the year to 31 March, as the bus and rail operator grappled with the Covid-19 pandemic and a £187m impairment on its Greyhound coach business. Amid international lockdowns and the closure of North American schools, average passenger volumes nosedived by around 90 per cent in March, traditionally a significant month for trading.
Coronavirus-related charges amounted to £21.5m for the period, but performance was also weighed down by a £141m provision for North American insurance, as well as £58.2m in restructuring and reorganisation costs.
For Greyhound, the impact of coronavirus followed an already difficult year with lower immigration-related demand in southern US border states, increasing competition and lower fuel prices making car travel more attractive. Revenue from the business dropped by 9.4 per cent at constant currencies to £603m.
Management did not provide guidance for 2021, citing uncertainties around how demand will recover, the rate at which fiscal support is wound down, the duration of social distancing and the timing of North American school reopenings.
Following the March year end, the group tapped the UK’s Covid corporate financing facility (CCFF) scheme for £300m and entered into a committed £250m bridging loan to repay a £350m bond maturing in April 2021.
Analyst consensus compiled by FactSet places adjusted EPS at 0.71p for March 2021, down from 12.1p in FY2020.
| FIRSTGROUP (FGP) | ||||
| ORD PRICE: | 49.2p | MARKET VALUE: | £ 599m | |
| TOUCH: | 49.1-49.3p | 12-MONTH HIGH: | 139p | LOW: 25p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 97p* | NET DEBT: | £3.3bn** | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 5.22 | 114 | 7.5 | nil |
| 2017 | 5.65 | 153 | 9.3 | nil |
| 2018 | 6.40 | -327 | -24.6 | nil |
| 2019 | 7.13 | -97.9 | -5.5 | nil |
| 2020 | 7.75 | -300 | -27.0 | nil |
| % change | +9 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £1.7bn, or 141p a share **Includes lease liabilities of £2.5bn | ||||
