Firstgroup Plc Annual Report and Accounts 2020 We Provide Easy and Convenient Mobility, Improving Quality of Life by Connecting People and Communities
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FirstGroup plc Annual Report and Accounts 2020 FirstGroup plc Annual Report and Accounts 2020 We provide easy and convenient mobility, improving quality of life by connecting people and communities. FirstGroup is a leading provider of transport services in the UK and North America. Our services are a vital part of society – transporting customers for business, education, health, social or recreational purposes. We create solutions that reduce complexity, making travel smoother and life easier. Easy and convenient mobility Our businesses are constantly evolving, harnessing the latest technology and innovation that allows us to deliver effortless and convenient journeys for customers. Our goal is to make life simple and remove complexity, so that Cautionary comment concerning forward-looking statements customers can enjoy This Annual Report and Accounts includes forward-looking statements with respect to the business, strategy and plans of FirstGroup and its current goals, assumptions smoother journeys and expectations relating to its future financial condition, performance and results. and interact with Generally, words such as ‘may’, ‘could’, ‘will’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘aim’, ‘outlook’, ‘believe’, ‘plan’, ‘seek’, ‘continue’, ‘potential’, ‘reasonably possible’ our systems and or similar expressions are intended to identify forward-looking statements. our services as By their nature, forward-looking statements involve known and unknown risks, easily as possible. assumptions, uncertainties and other factors which may cause actual results, Read more on page 5 performance or achievements of FirstGroup to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance, and shareholders are cautioned not to place undue reliance on them. Forward-looking statements speak only as of the date they are made and except as required by the UK Listing Rules and applicable law, FirstGroup does not undertake any obligation to update or change any forward-looking statements to reflect events occurring after the date of this Annual Report and Accounts. Contents report Strategic Strategic report Governance Financial statements Group overview 04 Chairman’s report 76 Consolidated income statement 136 Chairman’s statement 06 Board of Directors 79 Consolidated statement of 137 Financial summary 08 Our governance framework 82 comprehensive income Chief Executive’s report 09 Nomination Committee report 96 Consolidated balance sheet 138 Our markets 12 Audit Committee report 98 Consolidated statement of changes 139 in equity Our strategy and business model 16 Board Safety Committee report 108 Consolidated cash flow statement 140 Business review 18 Statement by the Chair of the 110 Remuneration Committee Note to the consolidated cash flow 140 Financial review 28 statement – reconciliation of net cash Sustainability 38 Directors’ remuneration report 114 flow to movement in net debt Safety 42 Directors’ report and 130 Notes to the consolidated 141 additional disclosures Our stakeholders 44 financial statements Directors’ responsibility statement 134 Key performance indicators 54 Independent auditor’s report 205 Principal risks and uncertainties 59 Group financial summary 218 Prospects and viability 69 Company balance sheet 219 Going concern 72 Statement of changes in equity 220 Non-financial reporting statement 74 Notes to the Company 221 financial statements Shareholder information 226 Financial calendar 227 Glossary 228 Connecting people and Improving communities quality of life Our businesses are part of the critical We provide greater infrastructure of choice and freedom in society. We are at where to go and how the heart of the to get there, giving our communities we serve customers more time and our services form to spend on the things part of the fabric of life that matter to them. for millions of people Our transport services each and every day. are essential We provide transport ingredients for vibrant to get people where and growing local they want to be – economies, and help whether it’s for improve congestion business, leisure, and air quality too. seeing friends and Read more on page 75 family, or exploring new destinations. Read more on pages 2, 3 and 137 FirstGroup Annual Report and Accounts 2020 01 Our communities FirstGroup at the heart of our communities Our businesses are part of the critical infrastructure of society. When the coronavirus pandemic led to wide scale lockdowns, our essential services made it possible for key workers to travel in order to carry out their crucial roles. As the restrictions ease, the resumption of our services is vital to helping local communities and economies open up safely. During a very difficult time our employees across the UK and North America provided direct assistance where it was needed most – to families and vulnerable people in the communities they serve. Providing skills and resources Our UK employees have provided hundreds of hours of community support as NHS volunteers (Adrian Worsfold, pictured, volunteered in Manchester), armed services reservists, special constables or paramedics to help the response efforts. First Bus found opportunities to redeploy some of its employees to other much needed roles outside of the company, most notably, bus drivers in York were loaned to York City Council to help address the shortage of council vehicle drivers. Transporting frontline workers First Student is assisting more than Greyhound is providing free transport 25 school districts with the logistics to first responders and medical and planning behind the delivery of professionals who are travelling meals and school supplies. Greyhound to another town or city to provide is delivering vital medical supplies and their expertise and care. First Bus safety equipment in partnership with responded to the need for service the American Red Cross and a number modifications to cater for shifts of key of blood banks, medical equipment NHS staff – including the provision manufacturers and testing centres. of shuttle buses in some areas. First Student teams also provided buses for healthcare workers and others who are on the front line of the pandemic. 02 FirstGroup Annual Report and Accounts 2020 Strategic report Strategic Supporting vulnerable people The Rail to Refuge scheme, in partnership with Women’s Aid, was created to provide free assistance to those fleeing from abuse within their own home and went nationwide in April following a pioneering trial on Great Western Railway. Greyhound’s Educational resources for longstanding ‘Home Free’ programme, home schooling in partnership with the National Runaway Safeline, continues to provide First Student drivers have transported free journeys home to runaway and home education materials including homeless youth. An influx of requests books and laptops. In Buffalo, New were received following the ‘stay York, for example, staff delivered 7,000 at home’ orders issued across curriculum packets across the city in North America in order to contain one single day. In addition, our train the spread of coronavirus. companies in the UK have made a number of children’s educational activities available for home schooling. Donating and delivering food supplies First Student drivers have delivered more than one million meals to vulnerable students across the USA Supporting disadvantaged and Canada since the pandemic children in the UK began. First Transit are also delivering food and medical supplies to In the UK the Group teamed up with communities, working in close Action for Children, our corporate partnership with various organisations charity partner, to support some of the to deliver the most appropriate support most vulnerable children and families in each location, including the New in the country. We are particularly York State National Guard; Walmart pleased to support their coronavirus in Houston and the Salvation Army in emergency appeal through the Minnesota. One example is East Bay deployment of the matched funding Paratransit in San Francisco where proceeds raised from our partnership drivers delivered food to 2,400 senior over the last year. Employees across citizens. Our First Rail companies the Group are also providing voluntary have been donating food products pro-bono support for Action for from on-board shops to NHS teams Children across a range of areas and charities across the country. including data analysis and reporting. FirstGroup Annual Report and Accounts 2020 03 Group overview Our North American divisions Our UK divisions Each of our three North America-based divisions operate throughout First Rail operations and First Bus services throughout the UK the US and in parts of Canada, and together generated 56% of our generated 44% of our revenue in 2020. revenue in 2020. Student journeys last year Passenger journeys last year 900m 500m First Student Yellow school buses First Bus In-year vehicle fleet The largest provider of student One of the largest bus operators transportation in North America in the UK with a fifth of the market – almost twice the size of the 43,000 outside London, serving two thirds 5,200 next largest competitor. of the UK’s 15 largest conurbations. See page 18 See page 24 Passenger journeys last year Passenger journeys last year 318m 340m First Transit Vehicles owned or operated First Rail Passenger miles last year First Transit is one of the largest One of the UK’s