FirstGroup Plc Finalizes Acquisition of RATP London
PR Newswire
LONDON, United Kingdom, February 28
Completion of RATP London Acquisition by FirstGroup Plc
FirstGroup plc (hereafter referred to as ‘the Group’) proudly announces the successful completion of its acquisition of RATP Dev Transit London Limited and its subsidiaries, collectively known as ‘RATP London’. This strategic move enhances the Group’s footprint in the competitive London bus market.
This acquisition not only solidifies FirstGroup’s position in London’s public transport sphere but also aligns with its goal to expand and diversify revenue streams.
An Overview of RATP London’s Market Presence
As highlighted in a previous announcement dated December 10, 2024, RATP London ranks among the significant bus operators in the capital, boasting an approximate market share of 12%. With a total fleet consisting of around 1,000 buses—of which one-third are fully electric—and operating from ten depots across Central and West London, RATP employs about 3,700 individuals.
Currently managing 83 Transport for London (‘TfL’) route contracts, it is anticipated that over the next five years revenues associated with these contracts will escalate to between £300 million and £350 million annually. Historically consistent with typical operating margins for similar services in London at around 6%-7%, this growth trajectory is promising.
Financial Implications Post-Acquisition
The Group forecasts that by the end of FY2025 its adjusted net debt will be approximately £130 million to £135 million. This projection reflects not only the closure of both the RATP London deal and Matthews Coach Hire acquisition but also encompasses ambitious plans for a share buyback program worth £50 million—expected to reach substantial completion by year-end.
Contact Information for Media Inquiries at FirstGroup
- Marianna Bowes – Head of Investor Relations
- Stuart Butchers – Group Head of Communications
- Email: corporate[email protected]
- Phone: +44 (0)20 7725 3354
Addendum from Brunswick Group:
- Andrew Porter / Simone Selzer
- T: +44 (0)20 7404 5959
Addendum from Panmure Liberum Corporate Broker:
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- Nicholas How / John More
- T: +44 (0)2031002000
Addendum from RBC Europe Limited:
- < li > Philip Turville / James Agnew / Jack Wood< / li >
< li >T: +44(0)2076534000< / l i >< / u l >Please Note:
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< h5 > Forward-Looking Statements Disclaimer:< # h5 >< p > Certain declarations within this announcement may represent “forward-looking statements” concerning our business strategies and objectives alongside current expectations pertaining to future financial health and operational outcomes. As such statements entail certain risks and uncertainties they may diverge materially from future actual results or performances delivered by our operations. Furthermore none should be interpreted as establishing profit forecasts over any specific timeframe . Stakeholders are advised against relying excessively on these forward-looking assertions. Barron’s has no intention beyond obligations under UK Listing Rules or applicable laws ,to amend or revise any forward-looking claims post announcement release date.< br />< # / p >
A Glance at FirstGroup:< H6 >
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FirstGroup plc(LSE:FGL.L ) stands tall as one among UK’s premier private sector providers delivering comprehensive public transport services.With annual revenues reported at approx£4 .7billion employing nearly30 ,000 individuals ,we cater close altogether nearing two m passangers daily during FY2024.YEAR .Our vision involves simplifying journeys – enhancing connectivity thereby facilitating access towards critical economic & social opportunities creating vitality within diverse community settings each partnered division reflecting leadership.Furthermore:
- Investment made into environmental sustainability where commitment reiterates achieving zero-emission integrated transportation solutions through dedicated frameworks established namely ‘First Bus’ targeted rollout scheduled() so model operations ensues long lasting value creation aligning core values while benefiting all vested stakeholder networks we serve alongside beneficial approaches pioneered !
For more insights visit us via website www.firstgroupplc.com follow along @firstgroupplc on social media CHANNELS.
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