Stagecoach’s steady showing
VIRGIN Rail and megabus.com owner Stagecoach has delivered a solid set of results based partly on expansion in the US where the megabus brand is being rolled out further.
Its preliminary results for the year ended April 30 show like-for-like revenue up 6.9% across the group to £2.59bn (2011: £2.38bn). However, profit before taxation was slightly down at £202.5m (2011: £205.7).
Commenting on the results, chief executive, Sir Brian Souter, said: “We con-tinue to see good organic growth in our bus and rail services in the UK and North America. This has been supported by our successful mix of innovation, value-for-money travel, continued investment in our services, and strong operational delivery.
“Our UK regional bus operations are delivering good returns with different management approaches applied to respond to the different conditions in each of the markets in which we operate. In London, our turnaround plan is progressing well and we have won new contracts on more acceptable profit margins.
“We are excited about the next phase of our growth plan for our budget coach brand megabus.com. As well as testing the market in Europe, we are expanding to new locations in North America where the response to the product from consumers has been particularly strong.
“The planned acquisitions from Coach America will enable us to expand our US business at a reasonable price while further underpinning the development of megabus.com in targeted regions.”
Stagecoach has been selected as a shortlisted bidder for Greater Western and Thameslink as part of the latest round of rail refranchising. Virgin Rail Group, has submitted a bid for the new inter-city West Coast franchise.
Stagecoach Group employs around 33,000 people.
