First Bus saw like-for-like patronage grow by 7% and overall revenue by 12% in the 53 weeks to 30 March when compared to the previous 52-week financial year. The results are detailed in parent FirstGroup’s annual report for FY2024 that also notes how revenue per mile rose by 13% across the same timeframe.
424 million passengers were carried over the most recent period compared to 390 million in FY2023, although the 7% uplift figure above excludes the additional week in FY2024.
First Bus adjusted operating profit over FY2024 was £83.6 million on a turnover of £1.01 billion, an adjusted margin of 8.3%. Those figures in FY2023 were £58.4 million and £903 million respectively for a margin of 6.5%. However, FY2024 saw a £146.9 million charge for a local government pension scheme-related matter applied to the above operating profit.
First Bus operating margin is on track to reach the longstanding target of 10% during the second half of FY2025, FirstGroup says.
Like-for-like operated mileage excluding the 53rd week fell by 2.9% from FY2023 to FY2024, but revenue growth was supported by the £2 bus fare cap in England and provision of free travel for resident under-22s in Scotland.
The business now has around 600 zero-emission buses in service. It notes that where an entire fleet is electric, vehicle maintenance costs fall by around 30% compared to diesel, while associated battery-electric infrastructure provision is “unlocking adjacent earnings streams” via opening of charging provision to third parties.
More battery-electric buses for some operating companies in England are due thanks to funding from the second round of the Zero Emission Bus Regional Areas scheme. That will take the First Bus zero-emission fleet to above 800.
Strong growth came in the adjacent services arm. It captures work including supported local services, workplace shuttles, rail replacement, and airport and airline contracts. Purchase of York Pullman in February and wider contract wins helped adjacent services turnover – which forms part of the First Bus total – rise to £219.8 million in FY2024 from £175.1 million.
A further uplift in the adjacent services arm’s contribution is expected in FY2025 via contract extensions and wins. FirstGroup CEO Graham Sutherland calls York Pullman “a high-performing operator” and says that it will “provide profitable growth opportunities in the contracted and commercial services market.”
Mr Sutherland adds that adjacent services give significant opportunity for expansion. “We are actively reviewing a pipeline of opportunities to grow the business and win further contracts,” he continues.”
Seemingly confirming that First Bus will bid for franchised bus service contracts in areas that it does not currently operate as they arise, Mr Sutherland says that the operator will look to support local authorities that move in that direction.
The business believes that franchised bus services will account for a 78% market share UK-wide (including London) by FY2029, although it also highlights very successful partnership work in Leicester. During FY2024, First Bus patronage in that city rose by almost 20% thanks to the Leicester Bus Partnership and frequency and punctuality improvements.
Full FY2024 results here
