FirstGroup returned to profitability and said it had made further progress across its rail and bus divisions underpinned by significant investment in growth, diversification of earnings and decarbonisation.
The company reported pre-tax profits of £169.6 million for the 12 months to 29 March, from a £24.4m loss in the previous year.
FY 2025 group adjusted revenue came in a £1.37 billion (FY 2024: £1.28bn), reflecting strong underlying First Bus performance, higher variable fees from the Department for Transport and further growth in open access rail.
Significant investment includes a c.£500m order for 14 UK-manufactured Hitachi trains to facilitate First Rail open access growth, with an option to invest an additional c.£460m should our ongoing applications be approved. The company is launching new open access routes, including a London-Sterling service.
Group adjusted operating profit increased to £222.8m (FY 2024: £204.3m), driven by First Bus rising £12.4m to £96m and First Rail up £5.5m to £148.8m
A final dividend of 4.8p per share is proposed, giving a FY total of 6.5p (FY 2024 total: 5.5p). There is an additional £50m buyback programme.
Russ Mould, investment director at AJ Bell, says: “There may have been wrong turns along the way but FirstGroup is doing a decent job of navigating a period of transition in both bus and rail. This is reflected in the shares trading at their highest levels in more than a decade.”
Bellway
The housebuilder reported robust trading through the spring selling season, with an increase in customer confidence and reservation rates compared to the first half of the financial year.
The forward order book increased by 7.7% and comprised 5,759 homes at 1 June 2025 (2 June 2024 – 5,346 homes).
The overall average selling price is now anticipated to be around £315,000 (31 July 2024 – £307,909). The increase from the previous guidance of around £310,000 is mainly due to changes in product mix.
The group is now fully sold for the current financial year and if market conditions remain stable, Bellway remains well-positioned to deliver cumulative volume growth of 20% in the two years to 31 July 2026.
Russ Mould, investment director at AJ Bell says: “The latest numbers from Bellway offer evidence of an improving outlook for UK housebuilders.” He notes that: “The company still has some way to go to build back margins and volumes to the levels seen in 2022 and 2023.
“However, this is still an encouraging update from Bellway, with its growing order book providing some visibility on future revenue, with the company also enjoying a strong balance sheet and land position.”
Hiring on hold
Recruitment plans are being put on hold as companies tighten their belts following recent tax and wage rises. Full story here
Rolls-Royce
Russ Mould at AJ Bell says: “It may not move the dial much for earnings, yet Rolls-Royce winning the Great British Nuclear competition is a big strategic achievement. It is ringing endorsement for its capabilities in small nuclear reactors.
“The engineer has long held the view that these products would soar in popularity and its strategic decision to try and get a first mover advantage now looks to be on the money.”
Marks & Spencer
Marks & Spencer has resumed online orders after a devastating cyber-attack knocked the business for six.
Shoppers can buy from a selection of fashion ranges as it takes a gradual approach to getting its website back into full transactional mode.
FTSE 100 rises
In early trade the blue-chip UK index moved 0.4% higher to 8,868, helped by strength in energy producers Shell and BP amid oil price resilience, and Rolls-Royce moving up on success with its nuclear operations.”
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