Award of London Cable Car contract

FIRSTGROUP PLC

Award of London cable car contract

FirstGroup plc ('FirstGroup' or the 'Group') is pleased to announce that it has been awarded the contract by Transport for London (‘TfL’) to operate the IFS Cloud London Cable Car that links the Greenwich Peninsula with the Royal Docks area on the north bank of the River Thames.

The contract will commence on 28 June 2024 and has an initial core five-year term with the option to extend for a further three years. The Group anticipates revenues of c.£60m over the eight-year period of the contract, with patronage risk taken by the authority; there is also limited capital expenditure and contingent capital.

Over the life of the contract, the Group will support TfL in its vision to promote the cable car as a leader in London’s leisure market. The Group is already working on plans to improve the service during the period of the contract, as well as creating educational outreach and work placements for school students in the local boroughs of Greenwich and Newham.  

Graham Sutherland, FirstGroup Chief Executive Officer, said:

“We are delighted to have been awarded the contract to operate the London cable car, the only urban cable car in the UK. We are looking forward to working with Transport for London in order to develop the customer proposition for this iconic London experience and landmark and place the service at the heart of its local community.”

“FirstGroup has been one of the largest transport operators in the country for nearly three decades, working with a wide range of partners under various forms of contract types, growing passenger demand, creating economic benefits for our communities and delivering significant infrastructure projects. We are actively pursuing opportunities to grow and diversify our portfolio and earnings through further opportunities in the UK, including participating in TfL tenders such as this.”

Forward-looking statements

Certain statements included or incorporated by reference within this announcement may constitute 'forward-looking statements' with respect to the business, strategy and plans of the Group and our current goals, assumptions and expectations relating to our future financial condition, performance and results. By their nature, forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that cause actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. No statement in this announcement should be construed as a profit forecast for any period. Shareholders are cautioned not to place undue reliance on the forward-looking statements. Except as required by the UK Listing Rules and applicable law, the Group does not undertake any obligation to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR 6 Annex 1R: 3.1

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With £4.8 billion in revenue and around 30,000 employees, we transported more than 1.8m passengers a day in 2022/23. We create solutions that reduce complexity, making travel smoother and life easier. Our businesses are at the heart of our communities and the essential services we provide are critical to delivering wider economic, social and environmental goals. Each of our divisions is a leader in its field: First Bus is the second largest regional bus operator in the UK, serving two-thirds of the country’s 15 largest conurbations with a fleet of more than 4,500 buses, and carrying more than a million passengers a day. First Rail is the UK’s largest rail operator, with many years of experience running long-distance, commuter, regional and sleeper rail services. We operate a fleet of more than 3,500 locomotives and rail carriages through three management fee-based train operating companies (Avanti West Coast, GWR, SWR) and two open access routes (Hull Trains and Lumo). We are formally committed to operating a zero-emission First Bus fleet by 2035, and First Rail will help support the UK Government’s goal to remove all diesel-only trains from service by 2040. In February 2023 FirstGroup was named as one of the world’s cleanest 200 public companies for the fourth consecutive year by sustainable business media group Corporate Knights in partnership with US not-for-profit organisation, As You Sow. We provide easy and convenient mobility, improving quality of life by connecting people and communities. Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on X.