First Group's value takes a dive

[Bob]

I hope DOR get it, rather have them running it than taxpayers money going to First shareholders

[Liverpool Street]

...
NX are close behind, now valued at £1.108 Billion

What does that mean for drivers, exactly?

[winston]

...
NX are close behind, now valued at £1.108 Billion

What does that mean for drivers, exactly?

Nothing, I was merely stating that NX group is now worth virtually the same as First Group yet First are much larger

[Liverpool Street]

...
NX are close behind, now valued at £1.108 Billion

What does that mean for drivers, exactly?

Nothing, I was merely stating that NX group is now worth virtually the same as First Group yet First are much larger

I see. I can't help feeling that this will be the way all the big companies will fall eventually. Well, if current trends continue.

[winston]

First Group release their interim results to 30th Sept at 7am in the morning. It will be interesting to see if First have stemmed the fall in UK bus profits and whether the division is showing signs of bouncing back following the various fare initiatives, fleet investments etc at some of First's large core bus operations. The results will also show a 3 month contribution with / without the First London operation.

First Group has also attracted the interests of a hedge fund activist investor, which up until recently had remained off the radar due to owning less than 3% of First group shares

http://www.telegraph.co.uk/finance/markets/10426263/Activist-investor-takes-FirstGroup-stake.html

[Justin Tyme]

Well, it looks like the First Bus interim results (a slight dip in profit margins) matched its expectations.  The review indicates that there are challenges to come, but for the first time in some years there was a small increase in passengers.  The report talks of plans for double-digit profits being a medium term target, and talks about work going on around the country - proof that localisation is now in place.   Good news is that First's debt has reduced considerably following its contentious share issue, and it is investing more.

The impression I get is that First Bus is turning around but there is still alot to do - and it will take time for the hard work taking place now to really bear fruit.

[Stuharris 6360]

Just seen this on another website

First breaks up Region

First UK Bus has restructured its South East and Midlands Regional business into "three smaller, stronger units."

Adrian Jones will be MD of the Essex business, based in Chelmsford.  Previously MD for First London & Berkshire, he was most recently Transition Director for Tower Transit, as part of its purchase of First London.

Joining from Arriva Yorkshire, David Squire will be the Interim MD of Eastern Counties, based in Norwich.

Nigel Eggleton joins from Transdev Blazefield, and becomes MD Midlands, based in Leicester.

[PM]

Just seen this on another website

First breaks up Region

First UK Bus has restructured its South East and Midlands Regional business into "three smaller, stronger units."

Adrian Jones will be MD of the Essex business, based in Chelmsford.  Previously MD for First London & Berkshire, he was most recently Transition Director for Tower Transit, as part of its purchase of First London.

Joining from Arriva Yorkshire, David Squire will be the Interim MD of Eastern Counties, based in Norwich.

Nigel Eggleton joins from Transdev Blazefield, and becomes MD Midlands, based in Leicester.

Interesting and thanks for posting that. Interestingly, Nigel Eggleton previously ran Go West Midlands and Oxford Bus Company so he's not really a stranger to the midlands. Would be interested to see if he can use a few of the Oxford Bus methods in Leicester

[DD12]

Just seen this on another website

First breaks up Region

First UK Bus has restructured its South East and Midlands Regional business into "three smaller, stronger units."


Nigel Eggleton joins from Transdev Blazefield, and becomes MD Midlands, based in Leicester.

Interesting and thanks for posting that. Interestingly, Nigel Eggleton previously ran Go West Midlands and Oxford Bus Company so he's not really a stranger to the midlands. Would be interested to see if he can use a few of the Oxford Bus methods in Leicester

Regarding Nigel Eggleton;  Can anyone who's moved about that much be any good?
( I HOPE SO ! )

[Justin Tyme]

Regarding Nigel Eggleton;  Can anyone who's moved about that much be any good?
( I HOPE SO ! )

Yes he can.  It was he, along with the Oxford Bus Company MD, who transformed Diamond into a quality operation - no mean feat with People's Express!  Since then he has worked for Blazefield - a high quality group which of course was led by Giles Fearnley.  I believe it's a good move by First.

[DD12]

Regarding Nigel Eggleton;  Can anyone who's moved about that much be any good?
( I HOPE SO ! )

Yes he can.  It was he, along with the Oxford Bus Company MD, who transformed Diamond into a quality operation - no mean feat with People's Express!  Since then he has worked for Blazefield - a high quality group which of course was led by Giles Fearnley.  I believe it's a good move by First.

Thankyou 'JT',   
That's just the sort of thing I want to hear!

[winston]

First Group has now got itself an activist investor trying to break the group up

http://www.ft.com/cms/s/0/9666c16e-6236-11e3-99d1-00144feabdc0.html#axzz2nDE7kVVw
http://www.telegraph.co.uk/finance/newsbysector/transport/10509828/FirstGroup-investor-Sandell-pushes-for-US-business-split.html

Gives values of First Student & Greyhound businesses
http://www.sharesmagazine.co.uk/news/activist-targets-firstgroup#.Uqj1jeKa97V

[PM]

Potentially if they did get rid of the US business then it would give them a lot of money to invest and pay down debts here so as margins in uk bus can be grown and more rail franchises won. I hope it happens, though it seems unlikely...

[winston]

Potentially if they did get rid of the US business then it would give them a lot of money to invest and pay down debts here so as margins in uk bus can be grown and more rail franchises won. I hope it happens, though it seems unlikely...

I can't see First Group selling off First Student, there is plenty of potential to increase profit margins there and it is a core subsidiary to First Group. If First Groups major shareholders do back the proposed plans & turn up the heat on Tim O'Toole & co, First Group could look to dispose of Greyhound to raise further cash & pay down debt, that sale could net £550-600 Million. Greyhound was always suggested as a possible disposal option to pay down group borrowings back when First Group first took over Laidlaw in 2007

[winston]

First Group needs to find itself another new chairman:

http://otp.investis.com/clients/uk/first_group/rns/regulatory-story.aspx?cid=858&newsid=444580