ScotRail gives First platform for success

FIRSTGROUP, the owner of First Scotrail, has recorded record results across all of its divisions as it hailed a year of "significant achievement".

Revenues for the Scottish group increased by 27 per cent to £4.7 billion, while adjusted operating profits rose 38 per cent to £360 million.

Pre-tax profits over the year to the end of March stood at £151m, compared to £140m last year.

The results were helped by the integration of American yellow school bus company Laidlaw, which they bought last year.

It also announced it is to raise around £230m through a placing of 43.7m shares at a discounted price to give it more flexibility to "carry on with consolidation", as well as lower debt accrued by the Laidlaw purchase.

The company said appetite for rail travel is strong and hailed the performance of First ScotRail, which recently had its franchise extended by three years to 2014.

The number of passengers using ScotRail services has increased by 19 per cent since FirstGroup started operating it.

Chief executive Moir Lockhead said: "This has been a year of significant achievement for the group with further strong performance in all our businesses.

"The acquisition of Laidlaw established the group as the market leader in North America and provides a unique opportunity to create value.

"Trading has been strong and we are seeing the results of our focus on customer service, quality and operational performance."

FirstGroup now runs nearly a quarter of all bus services in the UK, including a number of services in and around Edinburgh.

Revenues for the UK bus division in the year reached £1.1 billion, compared to £1.07bn in 2007, while operating profit rose by 18.4 per cent to £122m.

Overall UK rail revenues increased by six per cent to £1.9bn, while operating profit was up 10 per cent at £120m.

Mr Lockhead added: "The board is confident of the future prospects for the group and has committed to dividend growth of 10 per cent per annum for the fourth consecutive year."