Transport giant Firstgroup has hiked its dividend as profit surged year-on-year due to the strong demand for rail and bus travel. The FTSE 250 firm reported an adjusting operating profit of £204.3m, up from £161m, despite revenue dipping marginally to £4.
7bn. Off the back of this profit jump, Firstgroup hiked its full-year dividend by 45 per cent to 5.5p.
This is in addition to the £118m already returned to investors via share buybacks . On a statutory basis, the group reported a loss of £24.4m, but this was predominantly due to non-cash charges of £146.
9m related to its exit from two local government pension schemes. Shares rose over three per cent in early trading. Chief Executive Officer Graham Sutherland said: “We have made considerable progress in our financial and operational performance in FY 2024 as we continue to transform and grow our leading First Bus and First Rail businesses.
“This is testament to the resilience and capability of our people across the Group and leaves us well positioned to grow and create further value for all our stakeholders.” “Our focus remains on working with government and all our stakeholders to deliver for our customers and drive modal shift.” The increase in profit was due in part to a jump in passenger demand at Firstgroup’s rail segment, First Rail, which runs major British operators, including Great Western Railway, South Western, and Avanti West Coast.
Total rail passenger journeys reached 274m in full-year 2024, up .
