Stagecoach sees sales rise

City A.M. Reporter
Stagecoach said underlying sales rose across its UK and US bus and rail operations over the last three months and that it expects to meet its profit expectations for the year.

Like-for-like revenues at its British rail business, which includes London commuter franchise South West Trains, grew seven per cent in the 12 weeks to 25 July.

Meanwhile Virgin Rail, in which it owns a 49 per cent stake, achieved sales growth of 18.7 per cent.

Sales at its UK bus unit rose two per cent during the period, while its North American coaches operation posted a 6.9 per cent rise in underlying revenues in the three months to the end of July, shrugging off tough economic conditions and reduced capacity.

"Trading conditions have improved across the group, with improving revenue trends in both the UK and North America," the company said in a statement.

"The group remains on course to meet its expectations of profitability for the year ending 30 April 2011."

Stagecoach said the outlook for its businesses was positive despite uncertainty surrounding the effect of the change in the UK government and the sustainability and pace of economic recovery.

Shares in Stagecoach have fallen ten per cent in the last month.