According to the The International Business Times: FirstGroup said sales in the first three months of its financial year slipped, adding it was "too soon to judge" how Brexit would affect business. The transport firm said group first-quarter revenues fell 1.4% as its UK bus operations and US coach service Greyhound weighed on rises at its rail unit and other operations.
But the group said a weaker pound would boost sales. It added that two-thirds of its adjusted operating profit is made in the US, where it also runs school buses. The firm said: "The weakening of sterling since the referendum outcome would, if maintained, result in translation benefits from our US dollar-denominated businesses, albeit partly mitigated by some US dollar-denominated costs incurred in the UK divisions (principally for fuel), and some US dollar interest and tax costs."
It added that revenues at its UK bus division, which operates in cities such as Manchester, Bristol and Glasgow, fell by 1.4% because lower high street footfall and urban congestion saw passenger numbers decline.
This Is Money reports: Bus and train operator FirstGroup saw its first quarter revenues fall and said its UK business could be affected by lower consumer confidence stemming from the UK's decision to leave the EU. FirstGroup said the decline was mostly because of waning demand for long-distance coach trips in the US, with its Greyhound coach business reporting a 5 per cent fall in like-for-like passenger revenue.
The FTSE 250-listed travel operator said it was too soon to judge the overall effect of the EU referendum decision on its business, but noted that the strength of the dollar against the pound, if sustained, might boost profits, since more than two thirds of the group’s adjusted profits was generated in North America last year.
However, the group maintained its outlook for the year was unchanged as potential gains in the US could be offset by a ‘more challenging’ economic situation in the UK as a result of Brexit.
In reaction, FirstGroup shares slipped 0.9 per cent, or 0.9p lower to 101.3p in early morning trading.
The firm said it was planning to make further savings in its First Bus arm - which runs a fleet of around 6,300 buses - having already slashed costs by more than £20million in the past financial year, closing depots as part of cost-cutting efforts. Its rail arm also suffered a drop-off in demand from passengers following terrorist attacks in Paris and Brussels.
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