FirstGroup to Launch New London–Stirling Rail Route Under Lumo Brand

PUBLISHED: 02 Jun 2025 @ 18:08 | Comments (0) | More info about Fiona Craig

FirstGroup plc (LSE:FGP) has revealed plans for a new open access rail service connecting London and Stirling, with operations scheduled to commence in mid-2026. Operated under the company’s Lumo brand, the service will offer direct connections between London and central and southern Scotland, improving access to a number of stations along the route.

The company anticipates generating approximately £50 million in annual revenue from the service, with expectations of achieving a low double-digit operating profit margin. This initiative aligns with FirstGroup’s broader strategy to expand its open access rail operations, which are privately funded and focused on enhancing connectivity for underserved areas while supporting regional economic development.

FirstGroup’s overall financial outlook remains mixed. While the company continues to face challenges related to profitability and debt levels, it benefits from solid cash flow generation. Market indicators currently suggest bearish momentum, but the stock’s relatively low price-to-earnings ratio and stable dividend yield may provide downside protection. Recent corporate moves, including a share buyback program and targeted acquisitions, signal a strategic push to strengthen its position, though these actions have not yet fully translated into score-based performance improvements.

More about FirstGroup

FirstGroup plc is a major UK-based provider of public transportation services, generating £4.7 billion in revenue and employing around 30,000 people. The company operates through two main divisions: First Bus, one of the country’s leading bus operators, and First Rail, which oversees a broad range of rail services, including long-distance, regional, commuter, and overnight routes. FirstGroup is actively working toward sustainability goals, targeting a zero-emission bus fleet by 2035 and the phase-out of diesel-only trains by 2040.

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