TRANSPORT group Stagecoach yesterday confirmed steady growth across its operations and said profits remained on track.
In a trading update ahead of full-year results in June the Perth-based company said that, while it faced a number of challenges to growing profits in this year, overall current trading was satisfactory and prospects for the group “remain positive”.
Like-for-like revenue growth has been strongest in its Virgin Rail Group business, which saw a 5.9 per cent increase, and its regional bus operations in the UK, which enjoyed a 4.8 per cent rise.
Trading in the North America division was described in the update as satisfactory, despite the prolonged period of adverse weather across large parts of the US.
Megabus.com in North America is now the fastest-growing part of the group, increasing revenue by 16.5 per cent in the 11 months ended 31 March thanks to further growth in existing services as well as a contribution from launches in Texas and California.
Stagecoach said progress had also been made in resolving litigation regarding its Twin America bus joint venture over claims of anti-competitiveness.
The company expects to record exceptional pre-tax costs of around £9 million in its latest financial year in respect of its share of costs connected with the case.
It added trading remains challenging for Twin America as a result of an increasingly competitive New York sightseeing market.
Shares in Stagecoach closed up 2.7p at 376.6p. Results are due on 25 June.