Stagecoach trading ‘consistent’
According to a recent update on trading from Stagecoach, its business has been ‘consistent’ with its management’s expectations. There is no change to the adjusted earnings per share that it was anticipating for the year ending 30 April 2016. Like-for-like revenue growth for the company’s UK Bus regional operations for the 24 weeks ended 17 October 2015 was up 1%. This growth continues to come principally from commercial on and off bus revenue, with concessionary revenue growth described as remaining ‘modest’. Revenue from tendered and school services provided under contract has continued to decline, as a result of local authorities reducing spending on supported services due to budget constraints. Overall, estimated passenger journey numbers for the division during the period were 0.3% below last year, which is consistent with trends reported earlier this year. The company is accelerating its expansion plans with the launch of domestic services in France following the French Government’s decision to liberalise inter-city bus routes of at least 100km in distance from August 2015. Accordingly, it now expects net start-up losses of around £15m for the year ending 30 April 2016, which is around £5m higher than its previous expectations.
In Stagecoach’s UK Bus operations in London during the 24 weeks ended 17 October 2015, revenue grew 1.4%. Trading at the division is consistent with its expectations, with reported revenue growth reflecting the profile of contracts it has with TfL. Growth continues to be impacted by congestion resulting from road works, which affects the revenue the business receives as Quality Incentive Income based on its operational performance.