26th Aug 2015 06:46
LONDON (Alliance News) - Stagecoach Group PLC on Wednesday posted like-for-like revenue growth across the majority of its divisions, with strong UK trading slightly offset by continued challenges in its US division, though the group said it remains on course to meet its full-year expectations.
The FTSE 250 transport company said trading in the first months of its current financial year has been in line with its expectations, and it maintained its earnings guidance for the full year.
Stagecoach said like-for-like revenue in its UK regional bus operations was 1.0% in the 12 weeks to July 25, driven by commercial and off-bus revenue, while revenue growth in its UK London bus operations was 1.5%, driven by increases in contract prices.
Like-for-like revenue in UK Rail was up 5.5% in the period, excluding the Virgin Train East Coast venture, while Virgin Rail Group like-for-like revenue rose by 7.5% on the back of a strong performance and profit share payments from the UK Department of Transport.
The only downbeat division for the group was North America, where revenue in the three months to the July 31 fell by 5.3%. The Megabus coach business continues to be hit by weak demand, driven by lower fuel prices which have made it more viable for people to use their own cars, while the rest of the division's revenue was hit by the end of low-margin contracts.
By Sam Unsted; [email protected]; @SamUAtAlliance
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