Stagecoach figures ‘satisfactory’
Profitability remains ‘satisfactory’ at Stagecoach, according to its latest trading update. Its like for like revenue growth for the 24 weeks ended 13 October 2013 was 5% in its UK Bus (regional) operations. This part of the company’s business has ‘performed strongly’ and has experienced passenger and revenue increase year on year. Revenue growth in the 12 weeks ended 13 October 2013 was higher than the previously reported revenue growth of 4.5% for the preceding three months mainly as a result of revenue earned from providing additional bus services to replace trains affected by planned railway re-signalling work in the Nottingham area.
In Stagecoach’s UK Bus (London) business, like for like revenue growth in the period was 1.6%. The company continues to keep tight control of costs to ensure it can compete effectively for contracts. The reduction in revenue during the period includes the effect of non-recurring revenue related to the London Olympic and Paralympic Games. It is anticipated to reverse in the second half of the financial year as it benefits from the nine new contracts won last financial year. From 1 October 2013, the business no longer receives BSOG but this will be offset by a corresponding uplift in the contract prices paid to the business by TfL. The impact of this change will be an increase in both its reported revenues and costs, as well as a decline in profit margin but no overall change to profit.