FirstGroup (FGP)

Sector:

Commercial Transport

Index:

FTSE 250

170.70p
   
  • Change Today:
      0.70p
  • 52 Week High: 187.70p
  • 52 Week Low: 115.50p
  • Currency: UK Pounds
  • Shares Issued: 629.79m
  • Volume: 1,894,996
  • Market Cap: £1,075.05m
  • RiskGrade: 282

FirstGroup's Avanti told to improve West Coast service after deal extension

By Frank Prenesti

Date: Friday 07 Oct 2022

LONDON (ShareCast) - (Sharecast News) - Transport operator FirstGroup has been told its struggling Avanti West Coast operation must "drastically" improve services after being awarded a six-month extension to its contract by the UK government.
Avanti West Coast is operating under an Emergency Recovery Measures Agreement introduced to support it during the Covid pandemic. The train company last month asked the government ministers to relieve it from performance target deadlines, as it was hit by driver shortages.

The contract extension, which was due to expire on 16 October, will run broadly under the same terms. Avanti runs trains between London, Birmingham, Manchester, Glasgow and Edinburgh.

Avanti came under fire for poor services after it slashed the number of trains between London and Manchester to only one an hour and releasing tickets only a few days in advance.

UK Transport Secretary Anne-Marie Trevelyan, said Avanti's performance had been "unacceptable" and it "must do more to deliver certainty of service to its passengers".

Opposition Labour leader, Keir Starmer, and the mayor of Greater Manchester, Andy Burnham have called for Avanti to lose its contract unless it increased services.

"We are committed to working closely with government and our partners across the industry to deliver a successful railway that serves the needs of our customers and communities" said, FirstGroup chief executive Graham Sutherland.

FirstGroup, which owns Avanti West Coast in a joint venture with Italy's Trenitalia, has said it plans to increase services from about 180 trains a day to 264 on weekdays as more drivers become available. It has also said it will improve ticketing services.

However, the extension was slammed by Burnham, who said the "lack of an acceptable rescue plan from the company - and clear conditions from the Government - means very few people in Greater Manchester will support this extension".

"The damage that Avanti's failing service is inflicting on our economy, and the huge disruption to passengers, is completely unacceptable. The company has shown itself to be unable to stabilise their service and fix problems with ticketing and the on-board experience for passengers."

"The thought of another six months of what we're currently experiencing is a huge concern."

Shadow transport secretary Louise Haigh meanwhile described the extension of the contract as a "slap in the face for passengers".

"This failing operator has caused travel misery, and the government's answer is to hand over millions more in taxpayers' cash and consign passengers to another six months of chaos. If the government had any interest in doing their job, they would strip this failing operator of the contract and finally put passengers first."

Reporting by Frank Prenesti at Sharecast.com

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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 170.70p
Change Today 0.70p
% Change 0.41 %
52 Week High 187.70p
52 Week Low 115.50p
Volume 1,894,996
Shares Issued 629.79m
Market Cap £1,075.05m
RiskGrade 282

FirstGroup Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
68.20% above the market average68.20% above the market average68.20% above the market average68.20% above the market average68.20% above the market average
38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average
Income Not Available
Growth
33.48% above the market average33.48% above the market average33.48% above the market average33.48% above the market average33.48% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 6
buy
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FirstGroup Dividends

  Latest Previous
  Interim Final
Ex-Div 30-Nov-23 13-Jul-23
Paid 03-Jan-24 18-Aug-23
Amount 1.50p 2.90p

Trades for 31-May-2024

Time Volume / Share Price
16:41 122,916 @ 170.70p
16:35 1,086,908 @ 170.70p
16:29 646 @ 169.90p
16:29 600 @ 169.90p
16:29 257 @ 169.90p

FirstGroup Key Personnel

CFO Ryan Mangold
CEO Graham Sutherland

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