Stagecoach climbs on bus growth in US

 
Marion Dakers
BUS and rail company Stagecoach said yesterday its American business will help it hit forecasts this year.

Stagecoach, which runs Megabus and some yellow school buses in the United States, said sales in this division rose 5.7 per cent in the three months to the end of July. Megabus revenues jumped 21.8 per cent.

Its UK bus unit outside London saw 4.5 per cent growth, while its buses in the city posted a 0.6 per cent drop – a decline that Stagecoach expects will correct as new contracts begin later in the year.

Like-for-like revenues at Stagecoach’s rail arm, which includes the South Western franchise, rose 6.5 per cent. Its stake in Virgin Rail, the operator of the West Coast line, grew 5.8 per cent. Shares rose 3.05 per cent to close at 327.8p yesterday.