LONDON (UK) – UK bus and train operator FirstGroup said on Wednesday that it might not survive citing a collapse in passenger numbers, which caused a loss of 153 million pounds ($192 million) in the year to March, sending its shares cascading to 15%.
The firm, which owns the US Greyhound fleet of buses and operates school buses in the United States and Canada, said it had adequate resources to extend operations for the next year in spite of the “material uncertainty”.
Following pressure from its main shareholder, FirstGroup said it planned to sell its operations in North America. However, it has not revealed when they expect the sales to be completed.
Group CEO Matthew Gregory said in a media briefing that the Greyhound sale, which was in advanced stages, had slowed down after it was hit by the coronavirus crisis.
“We need a little bit more clarity but absolutely we’re ready to press on and resume that process as soon as we see how and when the schools get back,” he said.
The firm said passenger numbers dropped as much as 90% during lockdowns in its markets.
“There are material uncertainties as to how rapidly demand will increase, the rate at which fiscal support tapers and the duration of social distancing rules, as well as the timing of North American schools reopening,” the company said.
FirstGroup was supported by government funding in the US and UK.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field