First Group reports £150m losses as passenger numbers plummet during lockdown

FirstGroup, which runs bus services throughout South Yorkshire, has reported losses of up to £150m for the year to March 2020, citing the drop in passenger numbers during the pandemic as one of the reasons for the downturn.
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The public transport giant, which also operates bus and rail services around the UK as well as Greyhound and student buses in America, released its annual results announcement today (July 8).

The report revealed significant losses, which follow the year ending March 2019 where profits of £10m were reported.

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It said that during the beginning of the lockdown period in March this year passenger numbers were down as much as 90 per cent across the company’s international portfolio, with travel restrictions in place all over the world.

Buses Sheffield City Centre. Picture: Chris EtchellsBuses Sheffield City Centre. Picture: Chris Etchells
Buses Sheffield City Centre. Picture: Chris Etchells

The report said that while trading trends prior to the pandemic were broadly similar throughout the year, the impact of coronavirus in March, traditionally a significant trading period, had a significant impact on the company’s fortunes. Costs linked to the American aspects of the business were also cited.

Commenting, Chief Executive Matthew Gregory said: “I am immensely proud of our people who are working so hard to support our communities during the crisis, by maintaining essential transport services and providing direct assistance to those who need it most.

“There is no way of predicting with any certainty how the coronavirus pandemic will continue to affect the public transportation sector and the impact it may have on customer trends longer-term.”

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Mr Gregory was also confident that the difficult period for the business would not cause lasting long term damage, and said FirstGroup was in a strong position going forward.

He said: “As leading operators in each of our markets we are strongly positioned for a recovery in passenger demand and for the opportunities that may emerge from this exceptional period.

“Despite the near-term uncertainty, the long-term fundamentals of our businesses remain sound.

“The importance of public transport to society has never been more clearly demonstrated, and we will continue to take all necessary measures to enable the Group to emerge from this unprecedented situation in a robust position.”