Stagecoach numbers going the right way

STAGECOACH, the Perth-based transport group, yesterday reported a strong first half of the financial year with revenues rising across its bus and rail operations.

In a trading update the company said like-for-like sales at its domestic rail business, including the South West Trains commuter franchise in London which is the largest in the UK, grew 6.5 per cent in the 24 weeks to 17 October.

Virgin Rail, which Stagecoach owns a 49 per cent stake in, also saw strong growth with an increase of 15.2 per cent in the same period.

The UK bus business achieved a 2.3 per cent increase while its North American coaches operation posted a 7.5 per cent rise in underlying revenue in the five months to 30 September despite difficult economic conditions.

Overall the company said it was on track to meet market expectations for the full year.

Last month the UK government retained bus subsidies paid to operators, which were widely expected to be scrapped, but reduced them by 20 per cent from April 2012.

Stagecoach said the change would not impact on profits this year but that it would take the changes into account when making future decisions on bus services, tenders and fares.

The company re-entered the London bus market last month, buying the East London Bus Group for 53m.

Shares in Stagecoach closed up 1.9p at 216.1p, their highest closing level for more than two years.