Stagecoach train performance on track

Mar 9 2010 by Iain Laing, The Journal

TRANSPORT firm Stagecoach said it is seeing light at the end of the recessionary tunnel after rail revenues improved in line with a slight upturn in the economy.

The Perth-based company, which operates South West Trains and East Midlands Trains, said overall profitability remained on track despite the “unusually severe” winter weather that hit revenues for December and January.

Stagecoach said like-for-like revenues for its rail division – excluding tram operations – were up 2.1% in the 40 weeks to February 7, an improvement on the 1.9% reported for the six months to October.

But the bus division, which operates in more than 100 towns and cities across the UK, including many in the North East, saw comparable revenues slow to 3.4% in recent trading, from 4.4% in the half year. A spokesman for Stagecoach said that the bus arm had been the main victim of the winter weather as consumers travelled less.

Meanwhile, the firm’s North American business improved to a 5.2% year-on-year fall in revenues, from a 6.5% decline for the first half. The US business has been hit by high unem- ployment as passengers cut back on leisure travel, while results have also suffered on the weakness of the pound.

Stagecoach, which reorganised its debts at the end of last year, said its financial position remains strong. “Notwithstanding the continued, uncertain economic outlook in the countries in which the group operates, overall current trading remains in line with our expectations,” the firm said.