- General election threat
- Some transport tech stocks to consider
The holiday season underlined how the UK rail system has been crippled by strikes, signal problems, crew shortages and engineering work. London Paddington was shut on Christmas Eve, while most services from Kings Cross were cancelled. Despite the persistent disruption, however, the UK’s largest rail operator, FirstGroup (FGP), managed to grow its share price by two-thirds in 2023 and announced a £190mn share buyback. Can its winning streak continue as public frustration swells?
The first thing to note is that FirstGroup is not just a train company. It also runs a bus network, which is reporting rising ticket sales and widening margins, in stark contrast to rival Mobico (MCG) – formerly National Express. This has done a lot to bolster market sentiment.