Stagecoach on track for yearly forecast

STAGEGROUP said yesterday its recent trading was in line with expectations and it is retaining its earnings guidance for the year ending today.

The transport operator said like-for-like revenue grew in all its businesses, with particular strength in its London bus and UK rail operations.

Stagecoach said like-for-like revenue was up 8.1 per cent in its London bus operations in the 48 weeks to 29 March, and was up nine per cent in its UK rail operation.

UK regional bus revenue was up 2.4 per cent, while its North American operations reported growth of one per cent. Revenue in its Virgin Rail Group joint venture in the UK was up 7.6 per cent.

Stagecoach said revenue growth in its UK Rail sector was boosted by the operation of the new Virgin Trains East Coast rail franchise, which it took over on 1 March this year.

“The new franchise is expected to make a significant operating profit contribution in the year ending 30 April 2016, reflecting our programme of investment to grow the business by transforming the customer experience,” the firm stated.

It said London bus revenue growth was “consistent with” expectations.

The company’s full-year results are expected to be announced on 24 June.