Stagecoach Group has provided a trading update in respect of its financial year ending April 29, 2017, ahead of a series of meetings with analysts.
Like-for-like revenue movements for the financial year to date (44 weeks ended March 4) compared with the equivalent period in the previous year, were:
• A decline of 1.7% in UK Bus (regional operations);
• A 0.9% fall at UK Bus (London);
• An increase of 1.6% in UK Rail;
• Growth of 5.3% at Virgin Rail Group; and
• A 2.2% decline in North America.
Stagecoach said the decline in regional UK Bus revenues was largely as a result of weak underlying local economic conditions in some parts of the UK and sustained lower fuel prices. London revenue had an expected decline due to concluding contract tenders.
Trading at the group’s Megabus.com inter-city coach business in North America has continued to improve, though the company said the overall market remains challenging due to the effects of sustained lower fuel prices which have heightened car and air competition. The like-for-like revenue decline of 2.2% for the division includes a 5.4% decline for Megabus.com North America, though revenue per vehicle mile was up 2.8%.
Like-for-like revenue at other businesses in North America declined by 0.7%, largely reflecting reductions in mileage at the sightseeing business in California.
Stagecoach expects to announce the Group’s preliminary results for the year ended April 29, 2017 on June 28, 2017.
