Investors' Chronicle FirstGroup, Oxford Instruments & Blue Whale Growth: The Companies and Markets Show
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Jun 13, 2025 Valeria Martinez, a financial analyst, dives into FirstGroup's impressive results and how rail renationalisation is reshaping the industry. She discusses increased bus fares and the competitive landscape. Next, Julian Hofmann talks about Oxford Instruments' £60 million sale of its quantum business, shifting focus amid tariff challenges. Lastly, Alex Newman sheds light on Blue Whale Growth's unconventional investment in Philip Morris, highlighting its transition to non-cigarette products and the rising complexity of ESG categorization.
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FirstGroup Growth and Returns
- FirstGroup showed solid growth with a 7% revenue rise to $1.4 billion driven by First Bus and rail management fees.
- The $50 million buyback and dividend hike signal strong shareholder returns amid restructuring.
FirstGroup Bus Division Growth
- FirstGroup's bus division grew revenues by 7% aided by the UK fare cap increase from £2 to £3.
- Margins reached nearly 9% despite inflation and funding cuts, although passenger numbers declined due to higher fares.
Impact of Rail Renationalisation
- The UK government plans to renationalize all train operators by October 2027, including FirstGroup's Great Western and Avanti West Coast.
- These rail contracts are stable but low margin, so profit impact is limited but revenue scale reduces.