Stagecoach reports 'good' overall profitability over year

FTSE 250-listed transport group Stagecoach has reported that overall profitability of the group 'has remained good' with no significant change to its expected adjusted earnings per share for the year ending April 30th 2013.

In an interim management statement issued on Friday, the group reported that recent extreme weather in North America and the ongoing costs of a continued focus on building its business in the US intercity coach market has resulted in Stagecoach lowering its short-term operating profit expectations for the division.

However, at a group level, Stagecoach said that the impact of this has been largely offset by continued good trading in its UK businesses and lower than previously expected finance charges.

"We remain excited by the long-term prospects for our businesses in North America as we continue to develop the business and the megabus.com brand," the company reported in its statement.

Like-for-like growthThe group reported like-for-like revenue growth of 3.8% in its UK Bus regional operations for the 40 weeks ending February 3rd 2013.

Like-for-like revenue growth for the UK Bus London operations over the same time frame was 1.5%.

In the group's UK Rail business, like-for-like revenue growth was up 6.6% in the 40 weeks ending February 3rd.

In North America, like-for-like revenue growth was up 10.4% in the nine months ending January 31st. This included Megabus.com and excluded the disposed Wisconsin school bus business.

In the 40 weeks ending February 3rd, like-for-like revenue was up 3.3% at its Virgin Rail Group joint venture.

Stagecoach reported that the financial position of the group 'remains strong'.

MF