FirstGroup chief executive Matthew Gregory has decided to step down after pressure from major shareholder Coast Capital as the company reported lower full year profits.
Gregory will leave the firm on September 13 and be replaced on a temporary basis by chairman David Martin. First Group posted adjusted operating profits of £209m, down from £256.8m as revenue fell by almost £1bn to £6.8bn.
US-based Coast, which owns about 14% of the UK-listed company, on Monday called for Gregory’s resignation, along with two other board members.
Coast has been critical of First group’s $4.5bn disposal of its First Student and First Transit bus operations in the US to Scandinavian fund EQT.
It said that Gregory, who became chief executive in 2018, should “resign and be replaced by a CEO of industry competency, as soon as possible”.
