30th Jun 2021 11:24
(Alliance News) - Stagecoach Group PLC on Wednesday said it won't declare a dividend for its recent financial year as pandemic-related disruption to regional bus services caused both revenue and profit to plunge.
The Perth, Scotland-based public transport company - which operates 8,300 buses, coaches and trams in the UK - said pretax profit fell by 40% to GBP24.7 million in the year that ended May 1 from GBP40.6 million the year before.
Revenue dropped by 35% to GBP928.2 million from GBP1.42 billion.
The company noted that it remained in profit despite significant disruption, even reducing net debt to GBP312.6 million from GBP352.1 million a year before.
Stagecoach said that, due to continuing uncertainties caused by Covid-19, it was not proposing any dividends for the financial year. The company paid out 3.8 pence in financial 2020.
Since the year end, vehicle mileage has recovered to around 94% of pre-Covid levels, Stagecoach said, with commercial sales now at around 68% compared to the equivalent period in 2019, well up from a pandemic low point of 12%.
Chief Executive Martin Griffiths said: "We anticipate that it will be some time before demand for our public transport services returns to pre-Covid levels and we have planned for a number of scenarios.
"However, we remain confident that there is a strong and positive future for public transport as we emerge from the Covid-19 pandemic. Government commitments in the recently published National Bus Strategy for England, and similar ambitions in Scotland and Wales, provide a huge opportunity to fundamentally transform travel, moving away from towns and cities built around cars to more vibrant and prosperous places, well-connected by easy-to-use sustainable public transport and active travel," Griffiths added.
Stagecoach shares were trading up 1.3% at 83.20 pence each in London on Wednesday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
SGC.L