First Group Chairman to retire
First Group Chairman, David Martin, has announced he is to retire from the Board of First Group.
David Martin.
David Martin was appointed Chairman of FirstGroup in August 2019, serving as Executive Chairman following the departure of Chief Executive Officer, Matthew Gregory, in September 2021, until the appointment of the current Chief Executive Officer, Graham Sutherland, in May 2022.
During his tenure, David has undertaken a refresh of the skills and experience on the Board and overseen a what the Group describes as a significant change of strategy amid the pandemic. He oversaw the sale of the North American First Transit, First Student and Greyhound businesses, as well as the subsequent £500m tender offer to shareholders and a significant de-risking of the balance sheet and a reduction in pension liabilities including a £220m contribution to the First Bus pension scheme.
David also oversaw the reinstatement of dividend payments from the end of the 2023 financial year, in addition to returning £190m to shareholders via two share buyback programmes. In the 2024 financial year, the Group delivered a material increase in profit.
“I also thank David for his wise counsel in my first two years with the business” – Graham Sutherland, Chief Executive Officer
Graham Sutherland, Chief Executive Officer, said: “I thank David for his contribution to the Group and the strategic progress that he has overseen. I also thank David for his wise counsel in my first two years with the business and for helping to build a strong platform for the next stage.”
“I am proud of the progress that we have made at FirstGroup over the last five years under my Chairmanship” – David Martin
David Martin said: “I am proud of the progress that we have made at FirstGroup over the last five years under my Chairmanship. I will enjoy continuing to work with the team until my retirement from the Board. I wish the team the very best for the future.”
The announcement of David’s intention to retire aligns with the group’s 2024 AGM. A statement ahead of the AGM said the company’s overall trading performance for the financial year-to-date has been in line with the expectations it outlined in its full year results on 11 June 2024. Highlights include an agreement with an insurance company to buyout the remaining liabilities of the legacy Greyhound US pension plan, after which, the plan will be terminated. This transaction concludes the Group’s material liability discharge from the legacy Greyhound business, which it reports has been with a more favourable outcome than initially forecast. In the coming years, the Group anticipates a small cash surplus relating to the final exit.
The Group has also been upgraded to the highest possible AAA rating for ESG by MSCI (from AA previously). The upgrade was primarily driven by improvements in greenhouse gas mitigation efforts.
The Group is scheduled to announce its interim results for the six months to the end of September 2024 on 14 November 2024.
“We remain focused on working in partnership with government and all our stakeholders to deliver for our customers and employees” – Graham Sutherland
Graham Sutherland said: “FY 2024 was another successful year for FirstGroup as we continue to transform and grow our leading bus and rail businesses. We remain focused on working in partnership with government and all our stakeholders to deliver for our customers and employees, lead in environmental and social sustainability and support the delivery of wider economic goals.”