By Anthony O. Goriainoff

FirstGroup said it has agreed a joint venture with Hitachi to decarbonize its bus fleet, which will include a 10 million pounds ($12.4 million) investment from each partner and the purchase of up to 1,000 electric-bus batteries.

The FTSE 250-listed train and bus operator said Friday the newly-formed 50:50 joint venture, NextGen, will purchase the batteries valued at around GBP100 million.

The company expects the joint venture to provide an annual contribution to adjusted earnings of around GBP3 million by fiscal 2026.

It added it will also see around GBP20 million in savings in fiscal 2024 capital expenditure, combined with future savings of around GBP40 million to fiscal 2027. The company said that for the year ending March 2024 it anticipated a year-end adjusted net cash position of GBP40 million to GBP50 million.

Shares at 0800 GMT were up 7 pence, or 4%, at 183.20 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

November 17, 2023 03:18 ET (08:18 GMT)

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