LFL growth accelerates at Stagecoach

Like-for-like (LFL) sales growth at FTSE 250 transport group Stagecoach accelerated across most of its divisions during its fiscal third quarter, while the overall profitability of the business 'has remained good'.

For the 40 weeks ended February 5th, LFL in UK Bus, the group's largest division, increased by 3%, compared with the 2.3% growth seen in the first half. Meanwhile UK Rail's LFL growth (excluding the tram businesses) accelerated from 8.6% to 9.5%.

The North America division achieved 13.3% higher LFL sales, compared with the 12.1% increase in the first six months, however the firm's joint venture, Virgin Rail Group (VRG), saw its LFL growth rate ease from 9.3% to 8.9%.

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VRG is progressing its bid for the new West Coast Trains rail franchise, due to commence in December 2012.

Stagecoach said its has maintained a strong financial position with investment grade credit ratings and "substantial" headroom under its debt facilities.

"Overall current trading remains good and we believe the prospects for the group remain positive," the statement said.

BC