Train operator cancels dividend

Bus and train operator FirstGroup has announced a £615 million fundraising and cancelled its dividend after plans to turn around the business were derailed by the West Coast mainline fiasco.

The company, which is planning to pour £1.6 billion into a four-year investment programme and tackle debts of nearly £2 billion, told shareholders they would have to wait another year before seeing any pay-out.%VIRTUAL-SkimlinksPromo%