London buses motor ahead for Stagecoach

 
Adam Hignett
STAGECOACH is seeing growth across all its divisions, with its London market posting the biggest gains, according to a statement yesterday.

The international transport operator said profitability at the company remained satisfactory during the current financial year, and the outlook remains unchanged.

On a like-for-like basis, the company’s London bus operation showed the strongest revenue growth, up nearly 10 per cent during the 40 weeks to 1 February, with some revenue lost due to the 24-hour bus strike in January.

The company is still struggling to fully establish itself in the US market, with revenues growing by under two per cent overall, reflecting the intense competition and adverse weather conditions.

However, it saw a 10 per cent increase in revenues at its megabus.com division. The company said it now expected start-up costs for the unit to increase to £5m, with it not expected to turn a profit until 2017.

The company said despite a number of previously reported challenges to growing profit in the year ending 30 April 2015, overall current trading is satisfactory.