Transport switch helps FirstGroup

FirstGroup transports 2.5 billion passengers each year.

Transport group FirstGroup has reported a 57% jump in half-year revenues, helped by people switching to public transport as fuel prices remain high.

Revenue in the six months to the end of September stood at �2.8bn.

However, profit before tax fell 24% to �54.4m, primarily due to one-off costs related to the acquisition of US yellow school bus operator Laidlaw.

FirstGroup also operates the Greyhound coach services in the US, in addition to UK rail and bus franchises.

The company transports 2.5 billion passengers a year.

"We are encouraged by growing numbers of passengers switching from private car to public transport as consumers experience the rising cost of living couple with a greater awareness of the environmental benefits of public transport," said chairman Martin Gilbert.

FirstGroup said it had been able to increase profit margins despite its own rising fuel costs. Underlying operating profits rose 75.8% to �181.2m.

In the UK, rail passenger numbers increased by 5.9%, with revenue up 9.8%. The company operates four rail franchises: First Capital Connect, First Great Western, First ScotRail and First TransPennine Express.

Bus passenger revenue in the UK rose by 7.7%. FirstGroup says it is Britain's biggest bus operator, running more than one in five of all UK local bus services.

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