Firstgroup has posted a ?327 million loss for the financial year to 31 March, prompting CEO Tim O¡¯Toole to ¡®step down¡¯.
Shares in Firstgroup have fallen since the announcement this morning, with the company blaming its US-based bus firm Greyhound¡¯s ¡°inability to overcome the structural shift taking place in its long-haul markets¡± in the wake of increasing capacity on low-cost airlines.
The group says that while its Great Western and South Western rail franchises remain profitable, the Transpennine Express is projected to make a loss of ?106.3 million over the remainder of the contract.
Wolfhart Hauser, executive chairman of Firstgroup, commented: ¡°The board is examining all appropriate means to mobilise the considerable value inherent in the group. Initial actions from its evaluation are underway, including conducting a full external review of Greyhound¡¯s business model and prospects, which will conclude in the coming months.¡±
Along with its financial report, the group announced that Tim O¡¯Toole would step down as CEO, with Hauser to become interim executive chairman until a replacement is hired. CFO Matthew Gregory will become interim COO in addition to his existing duties.
O¡¯Toole said: ¡°The time is right for me to step aside. Today¡¯s results clear the way for the new approach sought by our chairman and the board.¡±
firstgroupplc.com