FirstGroup shares slide due to transport woes

Shares in British firm FirstGroup slid today after the firm’s Greyhound Bus arm suffered a poor festive season and growth rates in UK rail showed signs of strain.

The firm reported disappointing demand in North America over the Thanksgiving and Christmas holidays, resulting in Greyhound’s like-for-like revenues falling 4.5% in the period between the start of October and December 31.

FirstGroup also admitted that growth rates in its UK rail division were being impacted by the weakening economy, particularly in central London.

Despite the warning like-for-like revenues for the division, which operates franchises including First Great Western and First ScotRail, were up 7.2%.

FirstGroup said its UK bus division increased revenues by 7.6% as passengers opted for cheap travel alternatives.

While the company said it was well placed to withstand the economic downturn, shares in the FTSE 100 Index fell by around 11% today.