Scottish transport giant FirstGroup said yesterday it was too early to say what impact the UK’s decision to quit the European Union will have on the company.
A first quarter trading update from the Aberdeen-based company added: “More than two thirds of group adjusted operating profit was generated in North America in the last financial year.
“The weakening of sterling since the referendum outcome would, if maintained, result in translation benefits from our US dollar denominated businesses, albeit partly mitigated by some US dollar denominated costs incurred in the UK divisions – principally for fuel – and some US dollar interest and tax costs.
“Like other business sectors, our UK-based First Bus and First Rail operations are affected by trends in the wider economy, including factors such as weakening economic growth and lower consumer confidence.
“The degree to which the net currency benefit from our US-based operations will be offset by more challenging UK economic conditions for our UK-based businesses is uncertain at this stage.”
FirstGroup, which employs 110,000 people in operations on both sides of the Atlantic, reported a dip in revenue in the first quarter.
Sales fell by 1.4%, compared with a year earlier, which was largely due to poor trading in the US.
The group said first quarter like-for-like revenue in its bus division were down by 1.4%, while UK rail was up by 2.3%.
Figures from North America included a 5% fall in like-for-like sales at the group’s iconic Greyhound business.
Chief Executive Tim O’Toole said: “Our trading performance as outlined at the recent full year results in June has continued during the first quarter.
“The group expects to make strong progress in the current year despite a challenging and uncertain trading environment in several of our markets.”
Last month, FirstGroup saw annual results come under pressure after being hit by the loss of rail franchises including ScotRail.
Pre-tax profits for the year to March 31 came in at £113.5million, up from £105.8million previously, but revenue slumped by nearly 14% to about £5.2billion.
