Latest news with #FirstGroup
Yahoo
4 days ago
- Business
- Yahoo
FirstGroup (LON:FGP) Could Be A Buy For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that FirstGroup plc (LON:FGP) is about to go ex-dividend in just three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase FirstGroup's shares on or after the 3rd of July will not receive the dividend, which will be paid on the 8th of August. The company's upcoming dividend is UK£0.048 a share, following on from the last 12 months, when the company distributed a total of UK£0.065 per share to shareholders. Looking at the last 12 months of distributions, FirstGroup has a trailing yield of approximately 2.8% on its current stock price of UK£2.312. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether FirstGroup has been able to grow its dividends, or if the dividend might be cut. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. FirstGroup paid out a comfortable 32% of its profit last year. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. The good news is it paid out just 5.7% of its free cash flow in the last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for FirstGroup Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see FirstGroup has grown its earnings rapidly, up 75% a year for the past five years. Earnings per share have been growing very quickly, and the company is paying out a relatively low percentage of its profit and cash flow. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last three years, FirstGroup has lifted its dividend by approximately 81% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Is FirstGroup an attractive dividend stock, or better left on the shelf? We love that FirstGroup is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. FirstGroup looks solid on this analysis overall, and we'd definitely consider investigating it more closely. In light of that, while FirstGroup has an appealing dividend, it's worth knowing the risks involved with this stock. In terms of investment risks, we've identified 1 warning sign with FirstGroup and understanding them should be part of your investment process. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Times
4 days ago
- Business
- Times
Private rail firms face probe over ‘super' profits
A major row has erupted after ministers ordered a review into privately owned train companies extracting 'super normal profits' that risk costing taxpayers more than £200 million a year. An 'extremely late' intervention by transport secretary Heidi Alexander to clamp down on 'open access' train operators has this weekend sparked recriminations from FirstGroup, one of the country's biggest transport companies. It also threatens to derail Sir Richard Branson's bid to return the Virgin name to Britain's railways. Open access services have proved popular with consumers, with the likes of FirstGroup-owned Lumo offering fares from London to Edinburgh for as little as £19.99. Labour is pressing ahead with plans to bring the railways into full public ownership as the contracts to run services on behalf of the state expire. Alexander has insisted that open-access operators, which are not tied to timetables set by the government and compete with state-contracted firms, will be allowed to continue on the railways. Other popular operators include Grand Central and Hull Trains. But the government's top transport official is now urging a tougher stance on open-access firms. Richard Goodman, director-general for Rail Reform & Strategy, last week wrote to the Office of Rail and Road (ORR), the transport regulator, to raise the bar for granting licences to new open access operators. New analysis by the Department for Transport (DfT) had found that the annual 'abstraction' cost to the Exchequer would be up to £229 million if all the open-access operator licence applications were granted. 'This represents significant additional cost to taxpayers and would materially affect the funds available to the secretary of state. We therefore believe it is critical that the ORR immediately takes steps to fully understand and consider the cumulative scale and impacts of abstraction when it assesses open access applications,' Goodman continued. 'The secretary of state considers that this analysis should be undertaken in respect of all live applications as well as existing services in order for the ORR to fully discharge its duty to consider impacts to the secretary of state's funds.' Whitehall sources singled out FirstGroup, the FTSE 250 company behind London and Edinburgh service Lumo, and Hull Trains, which achieved a 32 per cent operating profit of £34.1 million in 2024-25. 'These super normal profits come about because [open-access operators] do not pay the full cost of accessing the track, nor do they have to meet public service obligations that require them to put on the services people need,' they said. FirstGroup this weekend hit back with a strongly worded letter of its own. Bosses raised concerns about the 'extremely late-stage' intervention by government officials. Steve Montgomery, FirstGroup managing director, said that Goodman's 'openly hostile' letter included claims that were 'demonstrably untrue' such as suggestions that open-access operators were an 'unwelcome drain on the DfT budget'. Sources close to the firm added that FirstGroup's open-access operations had been lossmaking during the pandemic and would soon be paying more in track access charges than contracted operators such as east coast main line firm LNER. South Western Railway was the first to be nationalised under Labour in May. It will be followed by c2c next month and Greater Anglia in October. They will join LNER, Northern, Southeastern and TransPennine Express, which were brought back into public ownership by the Conservatives after operational or financial failings. Others will be nationalised between now and 2028 and will ultimately be rebranded as Great British Railways. There has been an influx of open-access applications to the ORR since Labour swept to power last July. Among them is Branson, the billionaire whose operator Virgin Trains ran services on the west coast mainline between 1997 and 2019. Virgin has applied to start an open-access service on the same line. Alexander has previously voiced concerns about open-access operators luring customers that would otherwise travel on the incumbent state-contracted, or state-owned, operator. Fare income would go into the pockets of private companies that would otherwise be paid to the Exchequer. Politicians and civil servants refer to this as 'abstraction'. In a major blow to Branson's ambitions, Goodman said that the south part of the west coast main line was already 'severely constrained'. 'Additional open-access services would both prevent development of revenue-generative contracted services and increase performance risks to existing services due to perturbation,' he concluded. The government reiterated that there will be a place for open-access operators, even once all contracted services are brought under full public ownership. In May, the prime minister backed a new open-access service running from north Wales, the West Midlands and London called the Wrexham, Shropshire & Midlands Railway.
The Herald Scotland
12-06-2025
- Business
- The Herald Scotland
Scottish bus company ditches 'employee director' post
It added: 'As the UK bus and rail industries enter a period of significant change and we restructure the group accordingly, the board has reviewed the framework for engaging with colleagues and providing employee feedback to the board. Read more 'Going forward, in place of an employee director, the group will have a designated non-executive director. Following the group's AGM, Myrtle Dawes will be the designated non-executive director to ensure that the voice of the workforce is heard in the boardroom.' Lena Wilson, who chairs FirstGroup, said: 'I would like to express my thanks on behalf of the group and the workforce to Ant for his contribution to the board over the last five years and the insights he has provided. I look forward to working with Myrtle in her new role to ensure the board continues to be well briefed on the views of colleagues when taking decisions.' FirstGroup earlier this week highlighted the success of its Lumo trains between Edinburgh and London as it plans a major expansion of services linking Scottish cities with England. The company reported underlying pre-tax profits of £222.8 million in the 52 weeks to March 29, up from £204.3m in the prior financial year. Profits at First Bus rose by £12.4m to £96m. First Rail's profits increased by £5.5m to £148.8m. Chief executive officer Graham Sutherland said: 'I am pleased to report another positive set of results for our 2025 financial year. We have further strengthened our businesses and continued to deliver against our strategy, including growing and diversifying our earnings in both First Bus and First Rail. "This leaves us well placed to at least maintain our adjusted earnings per share in FY 2026, from a stronger base, as we continue to successfully navigate a period of transition in bus and rail in the UK."
Yahoo
11-06-2025
- Business
- Yahoo
Rail challenger to take on Labour's nationalised trains
Private train operator Lumo is plotting a range of new services across Britain in a direct challenge to Labour's nationalised rail network. FirstGroup, which owns the low-cost rail company, is looking to expand operations after already announcing plans to triple Lumo's passenger count to 10m a year with the addition of five new routes. Graham Sutherland, the chief executive, said FirstGroup is now studying population growth and housebuilding plans to determine where is best to introduce new routes. However, he said the company is particularly keen to restore direct services to London from small towns across the UK, while it is also exploring the possibility of launching trains between poorly connected regional centres. He said: 'Obviously it gets harder the further you get through it, but we feel there are other opportunities still to come out over time. 'Anything we are looking at is commercially sensitive. But the basic criteria is do we think there are under-served areas in terms of rail and do we have an opportunity to drive modal shift and get people out of their cars.' It comes after Labour sent out mixed messages on the continuation of private rail services following the launch of its state-backed railway company, Great British Railways (GBR). Privatised 'open-access' operators, which are not paid by the Government to run services and make their money only from passenger fares, are due to remain in private hands, according to the blueprint for GBR. However, Heidi Alexander, the Transport Secretary, wrote to the industry regulator in January advising it to adopt a more rigorous stance on approving open-access applications. GBR is set to be fully operational by next year. Meanwhile, The Telegraph revealed last month that LNER, which is already government-run, is predicted to lose out on £1bn in ticket sales to private operators offering cheaper fares. Mr Sutherland said open access is no threat to the nationalised railway, claiming instead that competition helps to improve standards and attract new customers. Mr Sutherland added that further routes targeted by Lumo were likely to conform to its existing long-distance model. FirstGroup currently operates open-access services along the east coast main line from Kings Cross to Edinburgh and Hull via Lumo and sister brand Hull Trains, which it plans to extend to Glasgow and Sheffield respectively. A further two new routes are guaranteed, one from London Euston to Stirling, in Scotland, and the other from London Paddington to Carmarthen, in south Wales, after FirstGroup bought access rights from Arriva's Grand Union. FirstGroup has also lodged applications with the Office of Rail and Road to run trains from Euston to Rochdale via Manchester and from Paddington to Hereford and Paignton, Devon. Should the company succeed in expanding to all seven routes, its open-access revenue should jump from £106m to around £300m, Mr Sutherland said. FirstGroup's South Western Railway became the first to be seized by Labour last month and will be followed by its remaining Avanti West Coast and Great Western franchises. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
11-06-2025
- Business
- Yahoo
Rail challenger to take on Labour's nationalised trains
Private train operator Lumo is plotting a range of new services across Britain in a direct challenge to Labour's nationalised rail network. FirstGroup, which owns the low-cost rail company, is looking to expand operations after already announcing plans to triple Lumo's passenger count to 10m a year with the addition of five new routes. Graham Sutherland, the chief executive, said FirstGroup is now studying population growth and housebuilding plans to determine where is best to introduce new routes. However, he said the company is particularly keen to restore direct services to London from small towns across the UK, while it is also exploring the possibility of launching trains between poorly connected regional centres. He said: 'Obviously it gets harder the further you get through it, but we feel there are other opportunities still to come out over time. 'Anything we are looking at is commercially sensitive. But the basic criteria is do we think there are under-served areas in terms of rail and do we have an opportunity to drive modal shift and get people out of their cars.' It comes after Labour sent out mixed messages on the continuation of private rail services following the launch of its state-backed railway company, Great British Railways (GBR). Privatised 'open-access' operators, which are not paid by the Government to run services and make their money only from passenger fares, are due to remain in private hands, according to the blueprint for GBR. However, Heidi Alexander, the Transport Secretary, wrote to the industry regulator in January advising it to adopt a more rigorous stance on approving open-access applications. GBR is set to be fully operational by next year. Meanwhile, The Telegraph revealed last month that LNER, which is already government-run, is predicted to lose out on £1bn in ticket sales to private operators offering cheaper fares. Mr Sutherland said open access is no threat to the nationalised railway, claiming instead that competition helps to improve standards and attract new customers. Mr Sutherland added that further routes targeted by Lumo were likely to conform to its existing long-distance model. FirstGroup currently operates open-access services along the east coast main line from Kings Cross to Edinburgh and Hull via Lumo and sister brand Hull Trains, which it plans to extend to Glasgow and Sheffield respectively. A further two new routes are guaranteed, one from London Euston to Stirling, in Scotland, and the other from London Paddington to Carmarthen, in south Wales, after FirstGroup bought access rights from Arriva's Grand Union. FirstGroup has also lodged applications with the Office of Rail and Road to run trains from Euston to Rochdale via Manchester and from Paddington to Hereford and Paignton, Devon. Should the company succeed in expanding to all seven routes, its open-access revenue should jump from £106m to around £300m, Mr Sutherland said. FirstGroup's South Western Railway became the first to be seized by Labour last month and will be followed by its remaining Avanti West Coast and Great Western franchises. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
