FirstGroup set to withdraw from UK to focus on US operations

By mcpherrin mcpherrin

The leading British transport company, FirstGroup, is set to focus on its US operations after selling off its bus division and withdrawing from UK rail operations, according to The Guardian.

Following pressure from major shareholders, the group will sell off its renowned Greyhound coach line despite surging revenues, but also having experienced a £98mn pretax loss.

FirstGroup revealed that its core market moving forward will be North America, with its school bus operations First Student and First Transit making approximately 60% of operating profits.

SEE ALSO:

With the activist investor Coast Capital, the biggest shareholder with a 10% holding, in the process of separating the US and UK businesses to replace the board after announcing First’s strategy as “extraordinarily destructive of capital.”

The company also runs Great Western Railway, TransPennine Express as well as Hull Trains. With Matthew Gregory, Chief Executive of FirstGroup, “looking at all options” for the transportation firm, it is expected that First’s interest in the UK railway sector could seen be at an end. “We have concerns with the current balance of risk and reward being offered,” said Gregory. “We await the outcome of the Williams review as it seeks to address these and other industry issues.”

Share

Featured Articles

Sustainability, ESG, net zero in focus at must-attend event

Sustainability takes centre stage at two-day hybrid conference featuring thought leaders covering circular economy, scope 3, ESG, B Corp, net zero, DE&I

Must-attend sustainability events for executives in 2022/23

Discuss and debate the most pressing issues around sustainability at these nine executive events – from London to Abu Dhabi, San Diego to Singapore

Meet the CEO on a mission to nurture women leaders in Africa

The argument for women leaders in Africa is compelling, yet numbers are small. But one female leader is on a mission to change that – Awamary Lowe-Khan

BCG's Daniel Weise on supply chain and procurement strategy

Leadership & Strategy

Flexible work perks heat up as the war on talent rages

Human Capital

Meet the COO: Former Israel Defense Force cyber lead Parnes

Technology & AI