Stagecoach profit plunges 91%
Stagecoach revenue has fallen from £800.2m in October 2019 to £454.6m in the same period this year, according to its latest financial results.
The operator’s interim results for the half-year ending 31 October 2020 showed a decline in pre-tax profits to £5.4m from last year’s figure of £65.9m. This is a 91% decrease.
Stagecoach is currently operating around 91% of prior year vehicle mileage. Commercial sales have recovered to almost 60% of prior year levels and now at around 54%, reflecting some tightening of Covid-19 restrictions.
According to the results, Stagecoach’s regional bus operations saw what it described as a significant recovery in patronage and commercial revenue since May 2020, notwithstanding social distancing and other restrictions throughout that period.
Martin Griffiths, Stagecoach Group Chief Executive, said: “The safety and wellbeing of customers and our people remains our absolute priority as we continue to navigate the Covid-19 pandemic. While the situation remains fluid, we have made progress in the restoration of our networks to close to pre-Covid levels and in growing passenger volumes safely.
“We have a strong business, with good liquidity, devolved operating companies closely focused on our customers and local communities, and a supportive relationship with government and our local authority partners.
“We welcome the UK, Scottish and Welsh governments’ recognition of the importance of bus and tram services, as evidenced by the sector-specific actions they have taken to support the continuation of vital services during the Covid-19 pandemic. We are working closely with our government and sector partners on a new framework to ensure the country’s public transport networks adapt to new working and travel patterns, are fit for the post-Covid world, and meet the continuing needs of our customers and communities.”