Bus and rail firm warns of long wait

The group, which recently tapped investors for £615m and cancelled its dividend, said its plans required “hard work and persistent delivery” for some time to come.

The message to shareholders at the company’s annual meeting in Aberdeen comes after a turbulent year in which its growth plans were derailed by the botched bidding process surrounding the West Coast mainline.

The Aberdeen-based company, which operates First Great Western, First Capital Connect and First ScotRail, is now planning to pour £1.6bn into a four-year investment programme and tackle debts of nearly £2bn.

It has been encouraged by recent trading, with a solid performance in its rail division following like-for-like passenger revenues growth of 5.5 per cent in the period between April and the end of June.

There has also been progress in the turnaround of its UK bus arm after passenger revenues improved by 1.4 per cent on a like-for-like basis.

The group added that its recovery plan for its US student bus operation was on track, although its Greyhound coach arm continues to be impacted by the softness of the US economy.

Chief executive Tim O’Toole said: “Trading during the period was in line with our expectations. While we continue to see challenging conditions in some of our markets, there is considerable long term opportunity across the group.”

[email protected]