StockMarketWire.com - Bus and train company FirstGroup scrapped its guidance amid substantial volume reductions in its passenger demand at businesses in North America and the UK amid the continued spread of the Covid-19 virus.

'Given these changes are all taking place during a significant trading period for the group, we are no longer able to provide guidance on the outturn for the remainder of the financial year to 31 March 2020,' FirstGroup said.

Its first student business had been impacted by the closure of almost all of the schools which it served, while first transit business was experiencing significantly reduced service requirements, the company said.

'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 added.

Against the deteriorating backdrop, the company said it has taken immediate and significant actions to reduce costs and optimise cash flow and liquidity, including removing all non-essential operating expenditures, halting all future capital expenditure and managing any existing capital expenditure commitments where practical.

The group had £400m in committed undrawn facilities and free cash in excess of £100m in addition to cash held inside its rail franchise operations and available supplier financing arrangements of more than $100, FirstGroup said.

At 8:38am: [LON:FGP] Firstgroup PLC share price was -1.05p at 37.17p



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