FirstGroup attacks Network Rail over Waterloo hitches

FirstGroup slammed Network Rail on Tuesday for infrastructure failings at Waterloo in the first few weeks of its operation of the South West Rail franchise.

Rail boss Tim O’Toole said the transport operator was happy with the increase in capacity after Network Rail’s work this summer to lengthen platforms, but added: “I just wish the infrastructure had been more robust following the work.”

FirstGroup took over one of the country’s busiest commuter franchises in August from Stagecoach, at the tail-end of work to lengthen platforms. Commuters had to put up with numerous signal failures on the platform extensions at the start of September.

FirstGroup, which also runs buses in the US and the Caribbean, saw revenues rise by 8.1% in the first half of the year to £2.7 billion, including only a month of South West Rail. However, without the new income from the Waterloo franchise and currency movements, revenues would have gone up by just 0.9%. The shares fell 2.7p to 107.2p.

Rail passenger revenue increased by 3.2%, despite fears that terrorism was deterring people from making non-essential trips into London.

Outside London, FirstGroup said bus revenue was flat and warned it would no longer invest in new buses in areas where the local authority was not actively working to lower congestion. First took a £6 million hit from Hurricane Maria in Puerto Rico. Statutory operating profit was 26.3% lower at £57.4 million.

Investors looking for the dividend, scrapped in 2013 amid an emergency rights issue, will have to wait longer as First pays down debt. A decision on the payout will be in the second half.