Deferring salaries and a freeze on hiring are among measures being taken by transport giant FirstGroup as it battles the impact of coronavirus on its business.
The Aberdeen-headquartered bus and rail group today highlighted “substantial” falls in passengers in North America and the UK.
Its First Student arm in the US has been hit by the closure of almost all of the schools which it serves.
“Government advice and policy in our markets is changing rapidly, and we are in very active discussions with many of our customers about future service levels and full or partial payments in lieu of reduced service,” it said today.
Given the disruption it said it could no longer give guidance on its performance in the current financial year.
The company said it was utilising “all levers at our disposal” to manage costs, including a combination of salary sacrifice and deferrals, hiring freezes, and the halting of consultant and contract labour.
FirstGroup chief executive Matthew Gregory said: “Continuity of transport is essential to governments, local services and many of our customers throughout this time, and they will also be critical to a restoration of normal life when the present uncertain and extremely difficult situation is overcome. We welcome and have accepted the UK Government’s swift and comprehensive offer of emergency measures which provides certainty for all of the group’s franchises and the continuity of our vital rail networks during this time.”
The company stressed it has “considerable financial headroom and liquidity” including undrawn committed headroom and free cash of approximately £400 million.
