First Group's value takes a dive

[winston]

First Group update:
https://otp.tools.investis.com/clients/uk/first_group/rns/regulatory-story.aspx?cid=858&newsid=1387518

[WyreForestShuttle]

FirstGroup PLC Annual Results are out:
Mar 2020
£m
Showing Revenue of  £7,754.67, 
Operating (loss)/profit of (£152.7)
With Earnings Per Shares of (£27.0)
Net debt of £43,278

https://otp.tools.investis.com/clients/uk/first_group/rns/regulatory-story.aspx?cid=858&newsid=1401183

[winston]

First Group has also warned over 'Material Uncertainty' over its future:

https://www.ft.com/content/c794895b-afc8-4bc7-ba62-59049926a617
https://www.thetimes.co.uk/article/first-group-fears-crash-as-losses-pile-up-bptrtch8b

[WyreForestShuttle]

First Group has also warned over 'Material Uncertainty' over its future:

https://www.ft.com/content/c794895b-afc8-4bc7-ba62-59049926a617
https://www.thetimes.co.uk/article/first-group-fears-crash-as-losses-pile-up-bptrtch8b

Just to expand on Winston's comment the ICAEW define 'Material Uncertainty " as follows:

"In case an entity considers the going concern assumption to be appropriate, but a material uncertainty exists, then such an entity would have to make disclosure of the fact in the financial statements of presence of uncertain future events or conditions that
may result in the entity being unable to continue in business"

Therefore FirstGroup are saying  material uncertainty exisits and the board is unable to obtain a high level of confidence about FirstGroup's solvency and liquidity for the foreseeable future put simply they fear they are going bust!

[winston]

I suspect post Covid, the UK's big 5 transport groups will end up consolidating at some point and we'll see the big five groups become the big four either through a collapse or a merger of equals.

[Solo1]

a post taken from face boook https://www.theguardian.com/business/2020/jul/08/firstgroup-could-cease-trading-as-coronavirus-hits-passenger-levels?fbclid=IwAR28CfGAmE9nP_JOlQ2fdZQIgIaw2SBjDHWKTUMp9YYXSKumUsY_dlbRWGc

[Busboy105]

I suspect post Covid, the UK's big 5 transport groups will end up consolidating at some point and we'll see the big five groups become the big four either through a collapse or a merger of equals.

What about NX?

[WyreForestShuttle]

What about NX?

Despite the reservations I expressed about the timing of National Express Group PLC recent share placing year on year National Express Group PLC grew revenues 11.98% from £ 2.45bn to £2.74bn while net income improved 3.98% from £135.70m to £141.10m. The National Express share price has moved by -20.9% over the past three months and it's currently trading at 170.4.

[Busboy105]

Despite the reservations I expressed about the timing of National Express Group PLC recent share placing year on year National Express Group PLC grew revenues 11.98% from £ 2.45bn to £2.74bn while net income improved 3.98% from £135.70m to £141.10m. The National Express share price has moved by -20.9% over the past three months and it's currently trading at 170.4.

Simple English, please.

[WyreForestShuttle]

Simple English, please.

National Express Group PLC are not issuing the warnings about the future of the company that FirstGroup PLC are.

[winston]

What about NX?

Anything is possible, especially now their captain is abandoning ship to a house builder.

[Busboy105]

National Express Group PLC are not issuing the warnings about the future of the company that FirstGroup PLC are.

So they're ok then compared to other bus companies?

[WyreForestShuttle]

So they're ok then compared to other bus companies?

We are living in unprecedented uncertain times. Today in the first time in my professional career we have had a Budget in July which indicates how businesses are suffering. However despite as Winston has indicated Dean Finch is departing there is nothing to suggest any stress tests are failing in National Express Group PLC

[metrocity]

FirstGroup PLC Annual Results are out:
Mar 2020
£m
Showing Revenue of  £7,754.67, 
Operating (loss)/profit of (£152.7)
With Earnings Per Shares of (£27.0)
Net debt of £43,278

https://otp.tools.investis.com/clients/uk/first_group/rns/regulatory-story.aspx?cid=858&newsid=1401183

Interesting that they attribute the fall in UK bus profit to March 2020 and reduction in passengers. Most operators were either no worse or if not better off in March due to funding being put in place by the DFT !

[winston]

Interesting that they attribute the fall in UK bus profit to March 2020 and reduction in passengers. Most operators were either no worse or if not better off in March due to funding being put in place by the DFT !

Plus full lockdown didn't even start until 23rd March.