FirstGroup considers suing Department of Transport
Rail company mulls legal action after its winning bid to run the West Coast Main Line was cancelled
FirstGroup is considering legal action against the Department for Transport after its winning bid to run the West Coast Main Line was abruptly cancelled, plunging the entire rail industry into chaos. Analysts say FirstGroup is facing £40m in lost cash flow this year and £50m of operating profits next year. The firm's shares have lost a fifth of their value, falling 50.6 to 193.4p. Karl Burns, at Shore Capital, told The Daily Telegraph that FirstGroup's balance sheet is threatened. "I don't think the dividend looks sustainable," he said.