Stagecoach ‘on course’

In a pre-close trading update in respect of its financial year ending 30 April 2016, Stagecoach Group said it is ‘on course’ to achieve its expectation of overall adjusted earnings per share for the year ending 30 April 2016. The operator’s UK Bus regional operations grew 0.2% in the 48 weeks ended 2 April 2016. Trading in this division is consistent with its recent expectations, with revenue growth in the UK over the last year being low. In light of that, it plans to keep fare increases for the year ahead to a minimum and will look to stimulate demand through those low fare increases, enhanced marketing and the further development and promotion of its digital offering.

As its megabus.com intercity coach business in mainland Europe develops, it has reported that business within the results of the UK Bus (regional operations) Division. At this early stage in its development, the mainland European business remains loss making. The company now intends to report that business as a separate segment to provide a clearer view of its financial performance distinct from the UK businesses.

Stagecoach’s London bus operations increased revenue 1.1% in the same period. As previously reported, it expects to see some decline in the operating margin of the Division but still aims to deliver long term operating margins in excess of 7%.