FirstGroup hikes dividend despite renationalisation threat

Public transport specialist FirstGroup (FGP) boosted its full-year dividend by 45 per cent and maintained its 2025 guidance despite the growing risk that its National Rail contracts will be renationalised under a likely Labour government.

Labour, which is around 20 points ahead in the polls ahead of the 4 July election, has said it will transfer contracts from train operating companies (TOCs) into a new state rail operator called Great British Railways “as they expire over the next few years or if they are broken by operators who fail to deliver for passengers”.