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FirstGroup flags going concern doubts after posting annual operating loss

The company, which has seen passenger numbers on its buses and trains sink by as much as 90% under coronavirus lockdowns, said its operating loss for the year ended March 31 was 153 million pounds ($191.89 million), compared with a profit of 9.8 million pounds last year, hit by charges.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

UK-based bus and rail operator FirstGroup on Wednesday warned on its ability to continue as a going concern, after posting an annual operating loss as passenger volumes plummeted due to the coronavirus crisis.

The company, which has seen passenger numbers on its buses and trains sink by as much as 90% under coronavirus lockdowns, said its operating loss for the year ended March 31 was 153 million pounds ($191.89 million), compared with a profit of 9.8 million pounds last year, hit by charges.

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In 2019, Aberdeen-headquartered FirstGroup put up its iconic Greyhound business and its other North American bus operations for sale, while fending off a coup attempt by a top investor.

The company recorded several charges for the year, including a 187 million pounds impairment charge for Greyhound, 141.3 million pounds related to a self-insurance provision for its North America operations and 21.5 million pounds of pandemic-related charges.

FirstGroup flagged material uncertainty over its ability to continue as a going concern, but said it has "adequate" resources to continue operations for the next 12 months.

($1 = 0.7973 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Devika Syamnath)


Copyright (2020) Thomson Reuters. This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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