FirstGroup (FGP)

Sector:

Commercial Transport

Index:

FTSE 250

133.30p
   
  • Change Today:
    -1.90p
  • 52 Week High: 187.70p
  • 52 Week Low: 133.10p
  • Currency: UK Pounds
  • Shares Issued: 615.47m
  • Volume: 1,581,365
  • Market Cap: £820.42m
  • RiskGrade: 282

FirstGroup CEO steps down after pressure from Coast Capital

By Frank Prenesti

Date: Tuesday 27 Jul 2021

LONDON (ShareCast) - (Sharecast News) - FirstGroup chief executive Matthew Gregory has decided to step down after pressure from major shareholder Coast Capital as the company swung to a full-year profit.
Gregory will leave the firm on September 13 and be replaced on a temporary basis by chairman David Martin. First Group posted an operating profit of £224.3m on a statutory basis from a loss of £299m a year earlier.

Adjusted operating profits were £209m, down from £256.8m as revenue fell by almost £1bn to £6.8bn. The company said it expects volumes to recover to between 80% - 90% of pre-pandemic levels during the first year after social distancing restrictions on public transport end.

New York-based Coast, which owns about 14% of the UK-listed company, on Monday called for Gregory's resignation, along with two other board members.

Coast has been critical of First group's $4.5bn disposal of its First Student and First Transit bus operations in the US to Scandinavian fund EQT, significantly undervaluing the business by selling it during the pandemic. The deal was eventually approved by shareholders in May despite the private equity firm's objections.

It said on Monday that Gregory, who became chief executive in 2018, should "resign and be replaced by a CEO of industry competency, as soon as possible".

The chief executive and a number of other board members survived a campaign in 2019 by the activist investor to oust them but Coast resumed its calls for Gregory to leave the company after the deal was announced.

Gregory said: "Having delivered the substantial portfolio rationalisation strategy and with FirstGroup now positioned to emerge from the pandemic as a resilient and robust business, I have decided the time is right for me to move on to new opportunities."

The group said it expects passenger numbers to recover to between 80% and 90% of pre-pandemic levels, from the current 60%, during the first year after the end of social distancing restrictions on public transport.

"We're expecting that after the summer the economy will begin to reopen and people will get back to a more normal way of life," Gregory said.

FirstGroup, which has also put up Greyhound for sale, remains in talks with potential bidders but the process has been affected by the pandemic as the service is running at around half its normal levels, he added.







Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

FirstGroup Market Data

Currency UK Pounds
Share Price 133.30p
Change Today -1.90p
% Change -1.41 %
52 Week High 187.70p
52 Week Low 133.10p
Volume 1,581,365
Shares Issued 615.47m
Market Cap £820.42m
RiskGrade 282

FirstGroup Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
11.07% below the market average11.07% below the market average11.07% below the market average11.07% below the market average11.07% below the market average
81.82% below the sector average81.82% below the sector average81.82% below the sector average81.82% below the sector average81.82% below the sector average
Price Trend
25.34% below the market average25.34% below the market average25.34% below the market average25.34% below the market average25.34% below the market average
63.64% below the sector average63.64% below the sector average63.64% below the sector average63.64% below the sector average63.64% below the sector average
Income
62.25% above the market average62.25% above the market average62.25% above the market average62.25% above the market average62.25% above the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Growth
24.36% above the market average24.36% above the market average24.36% above the market average24.36% above the market average24.36% above the market average
9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

FirstGroup Dividends

  Latest Previous
  Final Interim
Ex-Div 18-Jul-24 30-Nov-23
Paid 23-Aug-24 03-Jan-24
Amount 4.00p 1.50p

Trades for 31-Oct-2024

Time Volume / Share Price
16:55 44,372 @ 134.59p
16:55 291,031 @ 133.57p
16:35 970,885 @ 133.30p
16:35 8,102 @ 133.30p
16:35 770 @ 133.30p

FirstGroup Key Personnel

CFO Ryan Mangold
Chair Peter Lynas
CEO Graham Sutherland

Top of Page