4th Nov 2015 07:57
LONDON (Alliance News) - Stagecoach Group PLC on Wednesday said trading has been in line with its expectations in the first half and affirmed its earnings guidance for the financial year to the end of April 2016.
The FTSE 250 transport operator said like-for-like revenue growth for its UK regional bus business in the 24 weeks to October 17 was 1.0% on a year before, while its London bus operation delivered like-for-like growth of 1.4%. The regional unit continues to benefit from solid commercial and off-bus revenue, while concessionary revenue remains modest. The London bus unit is trading in line with Stagecoach's expectations, it said, though growth continues to be hit by congestion and roadworks in the capital, which effects the Quality Incentive Income Stagecoach is paid.
The company's UK rail business, excluding the Virgin Trains East Coast joint venture, rose 5.8% year-on-year, while the Virgin franchise delivered an 8.7% rise in revenue. UK rail has continued to perform well, and Stagecoach said it has revised up its operating profit forecast for the business for the full year given the good cost control in the business and the clarity on the revised terms of the East Midlands franchise.
The only blackspot was for Stagecoach's North American business, which saw like-for-like revenue fall 5.6% in the period from a year before. Lower fuel prices continue to effect demand for its coach services in the US, as potential customers decide to use their own cars instead.
Stagecoach will publish full interim results on December 9.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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