Interim Management Statement

Thursday 12 January 2012

                                FIRSTGROUP PLC                                 

                         INTERIM MANAGEMENT STATEMENT                          

FirstGroup plc ("the Group") reports the following update on trading during the
third quarter from 1 October to 31 December 2011 ("the period"). The Group
provided an update on trading as part of its half-yearly financial results
announcement on 9 November 2011. Since then overall trading for the Group
during the third quarter of the current financial year has been in line with
management's expectations.

First Student

We are pleased with the good progress we are making in executing our business
recovery plan. During the period First Student's performance continued to
develop in line with our expectations and, as previously indicated, we expect
operating margin for the second half of this current financial year to be
broadly in line with the same period last year.

First Transit

Trading continues in line with our expectations as we continue to renew
contracts and win new business by leveraging our strong reputation for delivery
and generating efficiencies. We continue to develop opportunities and encourage
the conversion of further contracts to the outsourced market.


Greyhound
Revenue growth has accelerated in line with our expectations with like-for-like
passenger revenue increasing by 5.9% during the period. Greyhound Express
continues to perform well and attract new customers and we are expanding the
service from our south east hub in Atlanta to new markets in Florida including
Jacksonville, Orlando, Tampa, Miami and Fort Lauderdale. In Canada we continue
to make good progress in right-sizing the network and reducing uneconomic
routes and are on track to deliver our profit recovery plan.

UK Bus

Like-for-like passenger revenue increased by 1.8% during the period. As
previously indicated, the weak economic environment continues to present
challenging trading conditions, particularly in Scotland and the North of
England, where a significant portion of our urban operations are concentrated.
As a result we are achieving lower growth rates in these areas as we see a
widening north-south divide. Our priority remains to maintain our strong cost
discipline and focus while equipping our networks, as appropriate, for future
growth.


UK Rail
During the period our rail division delivered another strong performance with
like-for-like passenger revenue increased by 8.0%. We are pleased that the
Department for Transport initiated the pre-qualification process for the
Thameslink and Great Western franchises and look forward to bidding for these
as well as progressing further new franchise opportunities as they emerge.

Outlook

We remain focused on cash generation to support capital investment, debt
reduction and dividend growth of 7%, in line with our current commitment.
Notwithstanding current trading in line with our expectations, we now expect
net cash generation to be in the range of £100m to £115m for 2011/12 due to
fewer disposals as a result of the economic and regulatory climate affecting
the realisation of appropriate value and timing.

The Group has market leading positions and operations that are fundamentally
strong and, while addressing the challenges of the current weak economic
environment in certain markets in which we operate, we have a clear focus on
strengthening our businesses for the future. The Group has good prospects to
deliver long-term value for shareholders in a sector which is a key enabler of
economic growth.

  A conference call for analysts and investors will be held at 9:00am today.   

Please call [phone] in advance of the call to register and to receive 
                               dial up details.                                

Contacts FirstGroup:

Nick Chevis, Acting Finance Director

Rachael Borthwick, Group Corporate Communications Director

Tel: [phone] / mobile + 44 (0) 7771 945432