Passenger and revenue growth for Stagecoach
According to an interim management statement covering the 12 weeks ended 20 July 2014, the overall profitability of Stagecoach Group has remained ‘satisfactory’. It said there has been no material change to its expected adjusted earnings per share for the year ending 30 April 2015. Like-for-like revenue growth for the financial year to date for its UK Bus regional operations during the 12 weeks was at 4%. This division has continued to grow both passenger volume and revenue year-on-year. Like-for-like passenger volume growth for the 12 week period was 0.9%. Higher commercial revenue has contributed most to overall revenue growth, with concessionary, contract, tendered and school revenue also continuing to increase. As the company expected, local authorities continue to seek to minimise concessionary reimbursement amounts and it has therefore continued its endeavours to deliver good growth in commercial revenue to offset inflationary cost increases.
Like-for-like revenue growth for the financial year to date for its UK Bus operations in London during the 12 weeks ended 20 July 2014 was at 14.4%. Revenue growth in this division was described as ‘strong’ during the period due to the commencement of two new contracts and the continuing effect of contracts won last year. Revenue growth has, however, been a ‘little less than expected’ due to quality incentive income being adversely affected by traffic disruption related to continuing road works. Excluding the uplift in contract prices to compensate for the cessation of BSOG, revenue increased by 8.7%. Its focus remains on keeping costs under control and bidding competitively to retain existing contracts and win new ones.
Looking to the future, Stagecoach has noted a number of challenges to growing profit in the year ending 30 April 2015. However, it claims overall current trading is satisfactory and it remains on course to meet its expectations for the year.