FIRSTGROUP PLC
GREYHOUND PROPERTY SALE

  • FirstGroup to sell almost all of its remaining legacy Greyhound property portfolio to Twenty Lake Holdings for c.$140m net proceeds
  • Following the sale, the Group's exit from residual Greyhound assets and liabilities will be substantially complete at an aggregate net value in excess of $160m since the start of the current financial year, ahead of expectations
  • Completion of the portfolio sale and receipt of proceeds expected in December 2022

FirstGroup plc ('FirstGroup' or the 'Group') today announces the sale by its subsidiary FirstGroup Services, Inc. of all but two of its remaining Greyhound US properties to Twenty Lake Management LLC, an affiliate of Twenty Lake Holdings LLC (the 'Buyer'), for net proceeds of c.$140m. The portfolio sale is subject to customary closing conditions for a transaction of this nature, with closing expected to occur and the proceeds received in cash in December 2022. In addition to the portfolio sale, the Group also completed the sale of a site in Denver for net $9m in August 2022, with some of the proceeds being applied in further de-risking of the residual Greyhound pensions liabilities.

In aggregate the book value of the Greyhound properties sold since the year end was c.$60m as at 26 March 2022, and as a result a profit on sale of c.$90m (net of property tax, selling and other costs) is expected to be booked in the current financial year.

Following these property sales, FirstGroup's residual exposure to legacy Greyhound assets comprises deferred consideration, residual real estate in Canada and two sites in the US (both under contract subject to due diligence), and funding awards from the Coronavirus Aid, Relief, and Economic Security ('CARES') Act and American Rescue Plan ('ARP') schemes relating to the period Greyhound was under the Group's ownership, altogether valued at c.$57m in total. This value is partially offset by legacy Greyhound liabilities (comprising residual insurance and pension liabilities which FirstGroup expects to de-risk in due course) and other provisions, together valued at c.$35m.

The Group will update on the application of the proceeds of the Greyhound property sale alongside publication of its half-yearly results in November.

Graham Sutherland, FirstGroup Chief Executive Officer, said:
"The sale of these residual Greyhound properties is another milestone in refocusing FirstGroup on our strong positions in bus and rail in the UK. We look forward to building on our robust platform for growth and shareholder value creation in future."

Contacts at FirstGroup:
Investor relations: Faisal Tabbah
Media: Stuart Butchers
corporate.comms@firstgroup.co.uk
Tel: +44 (0) 20 7725 3354
Contacts at Brunswick PR:
Andrew Porter / Simone Selzer
Tel: +44 (0) 20 7404 5959

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.

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

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With £4.6 billion in revenue and more than 30,000 employees, our UK divisions transported nearly 1.5m passengers a day in the last financial year. First Bus is the second largest regional bus operator in the UK, serving two-thirds of the UK’s 15 largest conurbations with a fleet of c.4,900 buses. 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 c.3,800 rail vehicles through four management fee-based train operating companies (Avanti, GWR, SWR, TPE) and two open access routes (Hull Trains and Lumo). 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. We are formally committed to operating a zero-emission First Bus fleet by 2035 and to cease purchasing further diesel buses after 2022; and First Rail will help support the UK Government’s goal to remove all diesel-only trains from service by 2040. In 2022 FirstGroup was named as one of the world's cleanest 200 public companies for the third consecutive year by sustainable business media group Corporate Knights in partnership with US not-for-profit organisation, As You Sow. Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on Twitter.

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