FIRSTGROUP has said profit in 2024 is expected to come in ahead of expectations due to soaring demand for its open access services run by Lumo and Hull trains.

Firstgroup said in a statement on the London Stock Exchange that Firstrail's performance had surpassed expectations since

November, primarily driven by "strong demand" and "effective yield management" in open access.

As a result, adjusted operating profit and earnings are expected to exceed prior forecasts, having already been hiked by between £14m and £20m in October.

Firstgroup said it expected to end the fiscal period with an adjusted net cash position of £60m to £70m, up from £20 to £30m at the end of the year. It said it still had £40m of a £115m share buyback programme still to be completed.

Open access providers in the UK run without being bogged down by hefty franchising fees and require no taxpayer subsidy. The model was introduced post-privatisation to encourage competition with Britain's mainstay train companies.

(c) 2024 City A.M., source Newspaper