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Transport group Firstgroup swung to annual profit as cost cuts helped offset the pandemic-led slump in travel activity.
For the year ended 27 March, pre-tax profit was £115.8 million compared with a loss of £299.6 million year-on-year, while revenue fell to £6.85 billion from £7.75 billion.
The company said it expects financial performance in the current financial year to provide a strong foundation including the commencement of regular dividend payments during FY23.
Looking ahead, the company said its current expectation is that volumes will recover to between 80%-to-90% of pre-pandemic levels during the first year after social distancing restrictions on public transport end, with further growth thereafter.
'We expect that the effect of any initial volume reductions due to post-pandemic changes in customer behaviour will be mitigated over time by targeted network changes, the profound support for modal shift and increasing bus patronage provided by the NBS, as well as our new data-driven pricing strategy and ticketing innovations,' the company said.
'First Bus has a significant level of operational gearing [...] we expect to deliver 10% margins in the first full financial year after pandemic-related social distancing restrictions on public transport end, in a range of potential passenger volume scenarios,' it added.