Stagecoach announces first financial results under DWS ownership

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Stagecoach Group, now a limited company rather than a PLC has announced its first interim results under the ownership of DWS. In the half-year to 29 October 2022, revenue grew to £669.6m, up from £579.4m for the previous six months, and adjusted total operating profit grew to £46.8m. The operating profit for the half-year, which includes Covid-19 grant income from the Government of £45.9m, brings the operating profit to £65.2m.

Positive cash generation in the half-year saw a £28.1m reduction in net debt, even after the increases in net debt of £34.4m arising on the acquisitions of bus operations previously operated by Kelsian Group and HCT Group in London, which added 950 employees and more than 300 buses operating 28 routes on behalf of Transport for London.

The group said it is actively managing the current inflationary environment by taking a balanced approach to protecting customers and employees from the cost of living pressures as far as possible while ensuring it maintains properly funded and sustainable bus networks, and remains positive on the long-term outlook while mindful of the immediate-term macro-economic challenges facing businesses across the country.

Martin Griffiths, Stagecoach Group Chief Executive, said: “We are pleased to report a positive set of results for the half-year ended 29 October 2022 as we move forward under new ownership. We have delivered increased revenue and profit, reflecting growth in our business and investment by the UK, Scottish and Welsh Governments in bus networks. We have made further progress as we rebuild from the pandemic, manage the immediate-term macro-economic headwinds, and position our business to maximise the opportunities for growth as we transition to a net zero future. At the same time, the current economic environment is helping to demonstrate the good value of our public transport services and encourage modal shift away from the car.

“We remain positive on the long-term outlook for the Group, while mindful of the macro-economic challenges facing businesses across the country. Underpinned by a strong financial position and with strong relationships with our national and local government partners, we are well-positioned for future growth for the benefit of our customers, employees, investors and wider stakeholders.”