Stagecoach speeds ahead following West Coast Mainline contract extension
TRANSPORT group Stagecoach, a minority shareholder in Virgin Trains, has seen revenue and profit before tax increase in the year to April 30.
Revenue is up from £2.80bn to £2.93bn, on a year on year basis, while profit before tax is up from £177.4m to £180.7m.
Announcing its preliminary results the firm also reported its net debt is down by £76.4m to £461.6m (2013: £538m).
Earlier this month it was announced Virgin Trains would continue operating services on the West Coast Main Line.
Transport secretary Patrick McLoughlin said Virgin Rail Group would continue to operate the WCML services until March 2017.
Speaking today, Stagecoach chief executive Martin Griffiths said: “We have met our expectations for the year. Across the group, we have a strong set of locally-managed businesses which are improving services for our customers, supporting the economy and communities, and adding value for our investors.
“Stagecoach is one of the UK’s premier rail operators and we see new franchising opportunities ahead. While we were disappointed not to secure the new Thameslink, Southern and Great Northern rail franchise, we are very pleased that Virgin Rail Group has agreed a new West Coast rail franchise and that we have extended our innovative alliance with Network Rail at South West Trains.
“Positive discussions are continuing with the Department for Transport with a view to agreeing franchise extensions or direct awards at South West Trains and East Midlands Trains. Our objective is to achieve agreements which will collectively benefit customers, taxpayers and our shareholders.”
Earlier this month Stagecoach said that direct rail services between Shrewsbury and London could be running by the end of the year.
