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FGP

Firstgroup PLC

Industrial Goods and Services First-pass screen £915m
420/1000 Overall fit
AI beneficiary 35% 28
Operating leverage 25% 62
Valuation 25% 30
Downside protection 15% 58

First-pass take

FirstGroup is a UK public transport operator with improving operational leverage (8.9% bus margins, up 60bps) and strong cash conversion, but has zero material AI exposure, high capital intensity (£150m+ annual electrification spend), £1.2bn IFRS 16 lease obligations, and significant policy risk as DfT contracts transition to public ownership. No valuation multiples disclosed.

Flags

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