FirstGroup to sell its US business. Also time to sell its shares too?

Did you see the big deal involving FirstGroup (FGP) - the bus and rain operator - whose shares are back to a level last seen in early March 2020 following their sale of two North American bus businesses (First Student and First Transit) to Swedish-based private equity group EQT Infrastructure for £3.3 billion? That is kind of interesting given here, back in September last year, the key was observing that ‘it is remarkable what a load of subsidies and a bit of cost control can do’ in terms of a share price that has doubled since.  

FirstGroup (#FGP) – agreement for sale of First Student and First Transit for c.£3.3bn headline enterprise value

FirstGroup (#FGP) – $137m North America property sales, “a number of other property sales processes are also underway”

FirstGroup (#FGP) – agrees covenant amendments, states “as a matter of prudence”

FirstGroup: it is remarkable what a load of subsidies and a bit of cost control can do

Back in July I concluded about bus and train operator FirstGroup (FGP) that 'councils and governments appear supportive but shareholders always have to worry when a subsidy game is propping a company up materially'. Today's AGM trading update exhibits similar themes...but also slips in a surprise profit running ahead of expectations ('small adjusted operating profit for the seasonally weaker first half of the financial year') comment. Hello a near 10% share price rise (although not yet a return of the share price to levels seen throughout the second quarter). So what is going on?...

FirstGroup (#FGP) – expects H1 “small” adj. Op profit, though with governments & customers currently extending funding measures

FirstGroup (#FGP) – extension of Great Western Railway Emergency Measures Agreement

FirstGroup (#FGP) – “welcomes” extension of funding from Government money tree, England First Bus passenger volumes increased to c.40% of previously

FirstGroup: your bus and train operator is still stopped at subsidy central

Rail and bus operator FirstGroup (FGP) may be surviving but it hardly is thriving. Personally, I have not been on a train for almost four months and - frankly - I cannot imagine jumping on one for at least another couple of months. Others will be more or less gung-ho but today's full year numbers nodded towards a similar theme. If you want to understand today's share price fall, then you have to start with 'travel volumes have reduced very substantially (still 75-90% in the UK rail and bus operations) and while guidance to limit travel and socially distance remains in place, this will have a significant impact on our service capacity and financial performance'...

FirstGroup (#FGP) – notes “new COVID-19 Bus Service Support Grant Restart programme” & enhancements to ‘First Bus’ app

Activism, the coronavirus and FirstGroup

Life has moved quickly in the last six weeks and that is particularly true at the bus and train operator FirstGroup (FGP) which back in early March I was excited about the potential for either the company's organic efforts to create value...or the company's big activist shareholder to force it.  

FirstGroup (#FGP) – currently outlook for adj. Op profit for year to 31st March “in line with our expectations”

FirstGroup (#FGP) – appointed advisors “to formally explore all options” for North American contract businesses “including a potential disposal”

The FirstGroup share price train heads north again

It was good to see today's regulatory news story about FirstGroup (FGP) that the typically wise and always serious Competition and Markets Authority (CMA) opined that after an investigation into the 'award of the West Coast Rail franchise to a joint venture between FirstGroup and Trenitalia...the award of the franchise can now go ahead without a more in-depth Phase 2 investigation'...

Oops...FirstGroup did it again

Mr Market giving you a kicking now and again keeps you suitably humble. Back in August I self-congratulated HERE about how 'one of my better portfolio performers year-to-date has been FirstGroup (FGP) which I have loved up a number of times in the last eighteen odd months on these pages, ever since the bus and rail company was silly enough (admittedly under a different management team) to turn down a bid from private equity'. Well that was all fine and dandy with both an activist shareholder AND the company coming up with its own plans to create value by splitting the company up. However today's update has pushed the shares down 20% odd percent as I write. So what has gone wrong given the value creation plans continue apace and full year numbers were reconfirmed?...

The FirstGroup renaissance continues

Outside of some legendary gold plays, one of my better portfolio performers year-to-date has been FirstGroup (FGP) which I have loved up a number of times in the last eighteen odd months on these pages, ever since it was silly enough (admittedly under a different management team) to turn down a bid from private equity. In my previous update, I recounted how the new management team were actually starting to copy some of the suggestions offered by activist challenges. Now this is all good stuff...but it is even better when you win new contracts…

FirstGroup (#FGP) – joint venture intended to be awarded new West Coast Partnership

Finally FirstGroup gets shareholder value creation religion

I thought Malcolm rather unfairly caught it over an article he wrote about FirstGroup (FGP) a few weeks ago as he highlighted something that has characterised my articles on the stock: there is value and change opportunity here...

FirstGroup (#FGP) – “plans to rationalise”. Future emphasis on North American contracting businesses

FirstGroup's Share Price has Travelled Up, but There May Be Further to Go

Hello Share Takers. As a self-styled green investor, though hypocritically not all the time, I tend to favour public transport providers. FirstGroup (FGP) buses are a familiar sight on our roads and it also operates in the USA and Canada. Those famous Greyhound buses are in its stable...