29th Oct 2013 09:11
LONDON (Alliance News) - Bus and train operator, Stagecoach said Tuesday overall profitability for the group remained "satisfactory" as it retained its expected adjusted earnings per share for the year ending 30 April 2014.
Stagecoach reported like-for-like revenue growth for the financial year-to-date in each of its main divisions, apart from its UK Bus business in London. The 1.6% reduction on 2012 figures for this division can be attributed to non-recurring revenue related to the London Olympic and Paralympic Games, and was expected by the firm.
Megabus.com in North America is the fastest-growing part of the Group, with revenue increasing by 23.7% in the five months ended 30 September 2013. Stagecoach confirms expansions plans for the division and intends to add, "significant new operating mileage over the next 12 months."
The company reports a strong performance by its regional UK Bus division, with revenues up 5% for the 24 weeks to 13 October 2013, driven by passenger volumes and revenue growing year-on-year. Stagecoach said commercial revenue continues to achieve the strongest growth.
The UK Rail sector performed in line with expectations, said Stagecoach, as it confirmed continued discussions with the Department for Transport regarding the planned extensions to its South Western Trains and East Midlands Trains franchises. The transportation firm has also submitted a bid for the Docklands Light Railway franchise to Transport for London last month, it is one of three bidders. The outcome of this bid, and its Thameslink franchise bid, are expected in early 2014.
Revenues for the Virgin Rail Group business are up 6.1% as Stagecoach noted that the division and the DfT are discussing revised commercial terms that could see VRG take greater revenue and cost risk for the period from a date to be agreed through to April 2017 for a "commensurate financial return."
Stagecoach says the group maintains a strong financial position with overall trading good and prospects remaining positive. Interim results for the six months to October 31 are due December 11 2013.
Shares in the bus and train operator were trading up 0.39% to 335.51 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright 2013 Alliance News Limited. All Rights Reserved.
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