FirstGroup Plc - Disposal

FirstGroup Plc - Disposal

PR Newswire

LONDON, United Kingdom, July 29

FIRSTGROUP PLC

sale of Mistral data

FirstGroup plc (the 'Group') announces that it has agreed the sale of Mistral Data Services Limited ('Mistral Data') to Tracsis plc (AIM: TRCS) for an enterprise value of £48 million on a cash-free, debt-free basis (the "Disposal"). The consideration will be payable in cash on completion, subject to customary adjustments.

A wholly owned subsidiary and part of the First Rail division, Mistral Data was established to develop and provide complementary software solutions to the rail industry. These solutions integrate data from multiple sources including customer-facing websites and apps and real-time data from Train Operating Companies and control centres, improving both passenger experience and operational performance. Revenues have grown from c.£7m million in FY 2022 to c.£13 million in FY 2026, with operating profit of c.£4 million.

Updated FY 2027 financial guidance

As a result of the sale, the Group anticipates a c.£4 million decrease in First Rail's FY 2027 adjusted operating profit and a c.0.6p decrease in Group adjusted earnings per share (FY 2026: 20.3p). The Group expects a profit on disposal of c.£46m, to be reported as an adjusting item for the purposes of the Group's operating profit and earnings per share.

Anticipated total cashflows from Mistral Data of c.£6 million were included in the Group's guided £90 million cash inflow from DfT TOCs and related Rail Services, and the sale of Mistral Data accelerates and enhances the associated cash inflow. The Group now expects free cash generation of c.£435 million over the next three years, which will form part of the Group's capital allocation policy, incorporating investment in UK growth and returns to shareholders.

Commenting, Graham Sutherland, FirstGroup Chief Executive Officer said:

"The sale of Mistral Data, which we have successfully grown into an attractive, high-quality asset, is another example of our ability to create and realise value as the UK transport sector evolves. The sale proceeds will further strengthen our balance sheet, supporting continued growth in attractive UK bus and rail markets and meaningful returns to our shareholders."

Notes to Editors

The cash consideration will be received in full on completion, subject to a normal post-completion true-up process. Completion of the Disposal is conditional principally on receipt of clearance by the Competition and Markets Authority and is expected by no later than 31 October 2026, at which time a further announcement will be made.

Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stephen Bethel, Director of Brand & Communications [e-mail] Tel: [phone]

Contacts at Brunswick Group: Simone Selzer / Charlotte Millington Tel: [phone]

Contacts at Panmure Liberum: Nicholas How / Matthew Fourie Tel: [phone]

Contacts at RBC Europe Limited: James Agnew / Elliot Thomas Tel: [phone]

Panmure Liberum acted as financial adviser to FirstGroup plc in relation to the Disposal.

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93.

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With around 30,000 employees, we reported revenue of £1.72 billion and transported almost 1.5m passengers a day in FY 2026. 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 one of the largest bus operators in the UK, serving more than 20% of the population in the UK with a fleet of c.6,000 buses and coaches, and carrying more than a million passengers a day. First Rail is one of the UK's most experienced rail operators, with many years of experience running long-distance, commuter, regional and sleeper rail services. We operate a fleet of c.320 trains through two DfT contracted train operating companies: WCP (incorporating Avanti West Coast and West Coast Partnership Development) and GWR, and three open access routes (Hull Trains and two under the Lumo brand). We are formally committed to operating a zero emission commercial 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. During FY 2026 FirstGroup received MSCI's highest possible ESG rating of AAA, was named one of the world's cleanest 200 public companies for the seventh consecutive year, was ranked in the top decile for its industry by ISS based on its ESG Performance Score and holds Yearbook membership with S&P Global. 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 on LinkedIn at http://www.linkedin.com/company/first-group.