Completion of Group pension buy-in and return of £17.5m escrow funds

FIRSTGROUP PLC

Completion of Group Pension Buy-in and return of £17.5m escrow funds

FirstGroup plc (the ‘Group’) has completed the buy-in of its c.£90 million Group Section Pension liabilities.

The Group Section escrow of c.£22 million has been utilised to complete the transaction. £17.5 million has been returned to the Group and £2.1 million applied towards the buy-in premium. The balance of c.£2.7 million has been retained in escrow to cover transaction legal and advisory costs and ultimately convert this to buy-out in the near term.

The Group retains c.£44 million in escrow relating to the Bus Section that will be reviewed as part of the 2030 triennial valuation.

Commenting, Ryan Mangold, FirstGroup Chief Financial Officer said:  

“Since 2020, we have settled c.£1.7bn of pension obligations, securing the pensions of former employees, substantially reducing pension risk and realising value for the Group. Our remaining pension schemes are well funded, and our focus remains on managing them efficiently while maintaining a strong balance sheet to support our capital allocation priorities.”

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93.

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public transport services. With around 30,000 employees, we reported revenue of £1.72 billion and transported almost 1.5m passengers a day in FY 2026. We create solutions that reduce complexity, making travel smoother and life easier. Our businesses are at the heart of our communities and the essential services we provide are critical to delivering wider economic, social and environmental goals. Each of our divisions is a leader in its field: First Bus is one of the largest bus operators in the UK, serving more than 20% of the population in the UK with a fleet of c.6,000 buses and coaches, and carrying more than a million passengers a day. First Rail is one of the UK’s most experienced rail operators, with many years of experience running long-distance, commuter, regional and sleeper rail services. We operate a fleet of c.320 trains through two DfT contracted train operating companies: WCP (incorporating Avanti West Coast and West Coast Partnership Development) and GWR, and three open access routes (Hull Trains and two under the Lumo brand). We are formally committed to operating a zero emission commercial bus fleet by 2035, and First Rail will help support the UK Government’s goal to remove all diesel-only trains from service by 2040. During FY 2026 FirstGroup received MSCI’s highest possible ESG rating of AAA, was named one of the world’s cleanest 200 public companies for the seventh consecutive year, was ranked in the top decile for its industry by ISS based on its ESG Performance Score and holds Yearbook membership with S&P Global. We provide easy and convenient mobility, improving quality of life by connecting people and communities. Visit our website at www.firstgroupplc.com and follow us on LinkedIn at http://www.linkedin.com/company/first-group.