Shares in transport operator FirstGroup (LON:FGP) fell over 2 percent in early trading on Tuesday, as an increase in revenue failed to offset a £2 million loss.

Group revenue rose 8.1 percent, as the new South Western rail franchise and favourable foreign exchange had had a positive impact on figures. Even excluding these factors group revenue saw an increase, moving up 0.9 percent.

Poor weather in the Americas hit profits, with severe hurricanes in the region affecting contracts in Puerto Rico and sending adjusted operating profits down 9.1 percent. Solid trading in other regions offset these figures to see operating profits as a whole remain flat.

However, its share price was hit on Tuesday morning as the Group, which operates three rail services in the UK and the Greyhound bus service in the US, reported a £2 million loss for the six months to September. This is a sharp drop from the pre-tax profit of £11 million reported in the same period in 2016.

Commenting, Chief Executive Tim O’Toole said:

“The overall trading performance and significantly increased free cash generation of the Group in the first half was consistent with the plans we outlined at the start of the financial year.

“In the second half we will benefit from our normal seasonal bias, our ongoing focus on cost efficiencies and from additional business which commenced in the period, including the South Western Railway franchise. We expect to make further progress and deliver substantial free cash generation for the year as a whole.”

Shares in First Group are currently trading down 2.27 percent at 107.40 (1016GMT).