Shares of Aberdeen-headquartered FirstGroup rose as much as 6% after it announced an additional £50 million share buyback and raised its 2025 forecast slightly ahead of its previous view, boosted by strong performance by its bus and rail services.

FirstGroup said its adjusted revenue rose to £649.6 million in the first-half ended September 28, from £634.8 million a year earlier. Group adjusted operating profit rose slightly to £100.8 million.

Interim dividend of 1.7p per share was declared (H1 2024: 1.5p per share).

In his outlook, FirstGroup CEO Graham Sutherland wrote: “Current trading and the Group’s outlook for FY 2025 is slightly ahead of the outlook set out in the full year results in June 2024.

“We expect to make further progress in First Bus, reaching a 10% adjusted operating margin in the second half.

“Financial performance in First Rail is anticipated to be slightly ahead of our prior expectations, reflecting growth achieved in open access and a normal level of variable fee awards in the DfT TOCs (approximately two thirds of the maximum available).”

On buybacks and dividends, Sutherland wrote: “We have maintained our strong balance sheet, reporting adjusted net debt of £0.2m at period end, having invested in the electrification of our bus fleet and infrastructure and returned c.£41m to shareholders via our buyback programme.

“In line with our disciplined capital policy and the Group’s continued strong financial performance, the Board has announced an additional £50m on market share buyback programme and declared an interim dividend of 1.7p per share (H1 2024: 1.5p per share).

“This will result in a dividend payment of c.£10m to be paid on 31 December 2024 to shareholders on the register at 29 November 2024.”

Sutherland added: “We have reported a robust set of results for the first half of our 2025 financial year and are on course to make further progress in the second half, reinforcing our strong track record for delivery.

“As a major bus and rail operator in the UK we have a critical role to play in supporting the country’s wider economic, social and environmental goals.

“We will continue to take a proactive approach, demonstrating our strengths as an experienced, trusted partner in public transport.”