A 15% rise in First Bus passenger revenue despite a cut in service miles contributed to a “strong” financial performance reported by First Group in its latest annual accounts.
Total fare intake for the bus operator totalled £660 million for the year ending 25 March 2023, which compared to £570 million for the previous 12-month period.
It reported 1.1 million passenger journeys per day compared to 0.9 million the previous year despite a 9% drop in service miles operated (169 versus 185 million miles). Commercial passenger volume increased 21% with concessionary volume up 19%.
First Group, whose profits across First Bus and First Rail more than doubled to £82.1 million, said the rise in bus revenue more than offset the 33% reduction in government funding to £86.5 million.
Accounts showed an improvement in operator margin over the second half of the financial year to 7.9%. The group said that increased passenger demand, improved driver availability and operations, network and fare realignments and regional management restructuring helped combat inflationary pressures.
During the year, First Group made acquisitions of Ensignbus in Essex, Airporter in Northern Ireland and the Metrobus service in Bristol but dropped First Scotland East and closed Southampton operations.
The operator invested £43 million in electric buses and infrastructure.
The company expect further progress in the following year due in part to increased vehicle efficiency, government policy driving demand and productivity improvements.
First Group Chief Executive Officer Graham Sutherland says: “In First Bus, we are seeing the benefits of actions we have taken to transform the business, and we are establishing ourselves as leaders in decarbonisation as we accelerate the electrification of our bus fleet to deliver value not just for FirstGroup but for all our stakeholders.”
In less encouraging news for the company, the union Unite announced yesterday that around 800 First West Yorkshire bus drivers will begin ongoing strike action from 18 June in a dispute over the date on which new pay rises are enacted back to normal.
