Changes at FirstGroup

[4630]

Changes at the top at FirstGroup following the announcement of their 2018 full year results today of £326.9m loss before tax.  CEO Tim O'Toole replaced.

 

Here is the announcement to the stock exchange of FirstGroup's results;

 

 

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FGP&ArticleCode=bicc9ogk&ArticleHeadline=Final_Results

 

And the Board and senior management changes effective from day;

 

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FGP&ArticleCode=3sizwte1&ArticleHeadline=Directorate_Change

 

Interesting comment in the full year results commentary,

 

"...onerous contract provision on TransPennine Express (TPE) rail franchise"

 

 

[lmsforever]

Interesting perhaps the city wolves are circling to buy the group and split it up as seems the way of the world now.

[phil-b259]

Interesting perhaps the city wolves are circling to buy the group

 

They are indeed.

 

It seems that a bunch of US venture capitalists are circling with promises to increase shareholder value via a hostile takeover. The latests moves by the board are effectively all attempts by the current board to discourage shareholders from being seduced and reassure them that the current management can address the groups decline in profitability (as seen by the money spivs and speculators in the city - its not as if the company is unprofitable, its just not as profitable as some think it could be )

 

https://www.railjournal.com/index.php/financial/first-group-rejects-us-takeover-bid.html

https://www.theguardian.com/business/2018/apr/11/firstgroup-rejects-takeover-bid-from-us-equity-group-apollo

https://www.rmt.org.uk/news/rmt-on-hostile-takeover-bid-for-first-group/

https://www.bing.com/search?pc=COSP&ptag=D030518-A427BB96684&form=CONBDF&conlogo=CT3335824&q=first+group+takeover+bid

Edited May 31, 2018 by phil-b259

[russ p]

Looks like a first group owned company will get even worse to work for as any company taking over will probably tighten up on what little terms band conditions first companies currently have.

[HillsideDepot]

...its not as if the company is unprofitable, its just not as profitable as some think it could be...

 

But they haven't paid a dividend in years, and as staff involvement was important at one time there are a lot of longer serving staff, still working hard, but feeling very let down.

[Gwiwer]

They haven't paid a dividend in years and even when they did it was a pittance.

 

I worked for them by default.  The large bus operator I then drove for was bought out (oddly, we thought) by the very modest Plympton Coachlines.  That turned out to be some sort of front with Badgerline behind the move and we duly became a Badgerline company.  Badgerline was then merged with other interests to become First Bus and then First Group.

 

Being permanently impecunious (to the extent that it was strongly rumoured we were at one time paying cash for fuel straight from the day's farebox revenue) pay rises were almost unheard of.  But one year the "suits" came down from Aberdeen with something new.  They offered us shares in the Group in lieu of a cash increase.  The deal was fairly straightforward.  Take it or we close the doors - there is no more cash.  We grudgingly took it.  My allocation of shares made me around £7 a year in dividends.  Hardly a worthwhile increase and taxable at that.  Those few shares have been worthless for some time now.

 

Curiously I once again work for First but this time jointly with MTR.  My opinion is best not added here because we don't discuss politics, because I need (and actually enjoy) the job and because I could potentially be identified and have my words held against me as breach of contract.