Stagecoach boosted by move to public transport
Bus and rail group Stagecoach reported a 27 per cent jump in full-year profit, helped by a shift to public transport as petrol prices keep drivers off the roads.
The Scotland-based transport group announced a pre-tax profit of £205.7m on revenue 10 per cent higher at £2.38bn for the year to the end of April. It hiked its full-year dividend by 9.2 percent to 7.1 pence.
“We are seeing growing demand for our bus and rail services in the UK and North America, with further evidence of modal shift as consumers look for better value and more convenient transport alternatives to the rising cost of motoring and increasing road congestion,” Brian Souter, Stagecoach’s chief executive said.
“We believe the outlook for our bus and rail services is positive … Stagecoach has made a good start to the financial year ending April 30, 2012.”
Revenue at its UK rail business, which includes the South West Trains London commuter franchise, grew 4.2 per cent during the year, while Virgin Rail, in which it owns a 49 per cent stake, achieved sales growth of 10.5 per cent.
Stagecoach, which last year re-entered the London bus market after buying the East London Bus Group, said sales at its UK bus unit rose 2.1 per cent during the period, while its North American coaches operation posted an 8.3 per cent rise in underlying revenue.