RAIL AND bus operator Firstgroup's share price jumped yesterday, after it raised its profit outlook thanks to better-than-expected demand.

The FTSE 250 company was the biggest riser on the index after the open, with its share price jumping 4.92 per cent to 153.7p per share.

This comes after the company said demand for its rail services had been stronger than anticipated due to more leisure travel during the summer.

Its operating profit is expected to be £12-£15m ahead of expectations for the year. In its results issued yesterday, it also said its First Bus division had traded ahead of expectations despite inflation, due to stronger passenger numbers.

Many Brits have turned to buses because of the cost of living crisis, and also because of repeated rail and train strikes this year that have crippled the country.

Firstgroup added that last month it ended a period of consultation over its two local government pension funds, and it will be terminating its participation at the end of the month.

The company said workers enrolled into it will now be put into a retirement savings plan, and terminating the deal will lead to £2-£3m in cost savings for the division.

The firm said it now anticipates its adjusted operating profit and group adjusted attributable profit to be at previous expectations.

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