First Group profits edge higher

First Group's train business did well, despite a cut in subsidies

Bus and train operator First Group has said the year has "started well" after unveiling a small rise in profit.

The company said pre-tax profits had risen to £161.3m from £159.8m last year, with all divisions of its business "seeing growth".

Turnover rose 8% to £2.47bn from £2.29bn last time.

The group, currently bidding for four UK rail franchises, said it was in a strong position to "maximise opportunities for growth".

Turnover at First Group's UK bus business rose almost £50m to £906.2m, while turnover at its UK rail business jumped to £945m from £842.3m last year.

'Successful year'

The company said the increase was a "strong result" as it had lost out on £17m due to a reduction in subsidies for First Great Western and increased franchise payments for the First Great Eastern service.

It added that bus passenger numbers had increased across the country, with the introduction of the Congestion Charge in London boosting passenger numbers in the capital.

Meanwhile, its US operations also fared well with the First Group racking up its fifth year of growth.

Turnover from its three operations in north America rose to £620.7m from £582.4m last year with profits from its school bus service rising 10%.

Chief executive Moir Lockhead said: "This has been another successful year.

"The group is in a strong financial position to maximise opportunities for growth. I am extremely confident about our future prospects."