Stagecoach hikes half year revenue

FTSE 250 public transport firm Stagecoach said like-for-like revenue grew 5.9 per cent in the half year to October and expects revenue growth in the second half to be 'relatively modest'.

FTSE 250 public transport firm Stagecoach said like-for-like revenue grew 5.9 per cent in the half year to October and expects revenue growth in the second half to be 'relatively modest'.

Total operating profit, before intangible asset expenses and exceptional items, for the six months to October 31st climbed 33.7% to £142m while revenue for the period increased to £1.403bn from £1.293bn in 2011.

Earnings per share surged 66.3% to 16.8p after profit growth from its bus operations and as its rail operations were boosted by revenue at East Midlands Trains.

Stagecoach, which runs Virgin Rail with Richard Branson's Virgin and is the current operator of the West Coast rail network franchise, said revenue at UK rail rose 6.6% to £599.9m in the last six months.

UK bus revenue slipped 0.6% to £116.4m while revenue at its North American division rose 19.8% to £316.4m.

Chief Executive Sir Brian Souter commented: "In the UK, we have achieved further growth in our regional bus operations and we continue to make good progress at our contracted London bus business. Passenger revenue growth remains good on our UK rail networks and we have further developed the alliance with Network Rail at South West Trains."

"We expect revenue growth in the second half of the financial year ending 30 April 2013 to remain relatively modest, as the organic growth in commercial revenue is partially offset by pressure on concessionary, tendered and contract revenue."

Stagecoach said it remains positive on the prospects for its regional bus operations and says the division is well placed to deliver some growth in operating profit in the year ending April 30th 2013.

"Our bus operations in the UK have proved robust and continued to perform well during weak macroeconomic conditions and a period of downward pressure on Government spending."

It sees good potential to grow its transport operations in the UK and North America, and believes the outlook is positive.

Underlining its confidence in future trading, the interim dividend has been lifted 8.3% to 2.6p.

CJ

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023