Disposal
FirstGroup sells Mistral Data Services to Tracsis for £48 million enterprise value, expects £46 million profit on disposal.
- Enterprise value £48 million
- Mistral Data FY 2026 revenue c.£13 million
- Mistral Data FY 2026 operating profit c.£4 million
- Expected profit on disposal c.£46 million
- FY 2027 adjusted EPS impact c.0.6p decrease
- Expected free cash generation (3 years) c.£435 million
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FirstGroup plc (the `Group') announces that it has agreed the sale of Mistral Data Services Limited (`Mistral Data') to Tracsis plc (AIM: TRCS) for an enterprise value of £48 million on a cash-free, debt-free basis (the "Disposal"). The consideration will be payable in cash on completion, subject to customary adjustments.
A wholly owned subsidiary and part of the First Rail division, Mistral Data was established to develop and provide complementary software solutions to the rail industry. These solutions integrate data from multiple sources including customer-facing websites and apps and real-time data from Train Operating Companies and control centres, improving both passenger experience and operational performance. Revenues have grown from c.£7m million in FY 2022 to c.£13 million in FY 2026, with operating profit of c.£4 million.
Updated FY 2027 financial guidance
As a result of the sale, the Group anticipates a c.£4 million decrease in First Rail's FY 2027 adjusted operating profit and a c.0.6p decrease in Group adjusted earnings per share (FY 2026: 20.3p). The Group expects a profit on disposal of c.£46m, to be reported as an adjusting item for the purposes of the Group's operating profit and earnings per share.
Anticipated total cashflows from Mistral Data of c.£6 million were included in the Group's guided £90 million cash inflow from DfT TOCs and related Rail Services, and the sale of Mistral Data accelerates and enhances the associated cash inflow. The Group now expects free cash generation of c.£435 million over the next three years, which will form part of the Group's capital allocation policy, incorporating investment in UK growth and returns to shareholders.
Commenting, Graham Sutherland, FirstGroup Chief Executive Officer said:
"The sale of Mistral Data, which we have successfully grown into an attractive, high-quality asset, is another example of our ability to create and realise value as the UK transport sector evolves. The sale proceeds will further strengthen our balance sheet, supporting continued growth in attractive UK bus and rail markets and meaningful returns to our shareholders."
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