7th Dec 2016 07:31
LONDON (Alliance News) - Transport services provider Stagecoach Group PLC on Wednesday reported a dip in pretax profit for the first half of its financial year but hiked its dividend as it said its expectations for the full year are broadly unchanged.
The bus and rail operator said it made a pretax profit of GBP89.5 million in the six months to October 29, down slightly from GBP90.8 million a year before.
Revenue edged up to GBP2.00 billion from GBP1.97 billion. Stagecoach said revenue trends across its operations have been subdued through the first half, compared to the robust growth delivered in the past decade. It has taken steps on pricing and its investment plans to try to address this, with a view to ensuring that moves it makes to boost short-term performance do not harm its long-term future.
In the UK and North America both, Stagecoach said it has seen growth in bus and rail services hurt by lower fuel prices, which has resulted in people electing to drive rather than take the bus or train, and by airlines passing on lower fuel costs via reduced ticket prices.
Stagecoach declared an interim dividend of 3.80 pence per share, up 8.6% on 3.50p a year prior, reflecting the company's confidence in the long-term prospects for public transport markets.
"We are pleased with the performance of the business in the face of a challenging and uncertain political and economic environment. We have met our expectations of earnings per share for the first half of the year," said Chief Executive Martin Griffiths.
"We remain confident that we can continue to deliver long-term value to our customers and shareholders. The prospects for growth in public transport in the UK and North America remain good and we are continuing to invest to ensure that our businesses are a central part of that growth," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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