Stagecoach profits rocket as passenger journeys boom
Stagecoach’s profits have gone up 104.3 per cent in the half year ended 30 October, rocketing to £32.9m compared with £16.1m registered in the same period last year.
Earnings per share went up from 0.1p to 2.7p in the same timeframe.
The transport giant’s revenues have also hiked from £454.6m to £579.4 as a result of passenger growth recovering, with journeys and commercial sales going up 70 and 80 per cent of 2019 levels respectively.
“We are pleased at the positive progress of the business as confidence in public transport returns and more customers use our bus, coach and tram services,” said Stagecoach’s group chief executive Martin Griffiths.
“While the pace of recovery may vary, we are well-placed to deliver on the extensive opportunities beyond the pandemic and on the back of the COP26 climate change conference to attract people out of cars to more sustainable public transport.”
According to Griffiths, the positive results were delivered by Stagecoach bidding on contracts in the UK and overseas – including in Dubai where the group has submitted bids for two bus contracts.
“The group maintains a solid financial position with investment grade credit ratings, substantial available liquidity and appropriate headroom under its debt facilities,” he said.
“We continue to see a positive outlook for our bus, coach and tram services, whether as a standalone business or as part of a combined future group.”
Stagecoach is reportedly currently still in talks with rival National Express, with the Perth-based group saying that “constructive discussions are continuing with National Express on a potential combination of both groups that would deliver strong value creation for both sets of shareholders.”
In October, Stagecoach’s panel on takeover and mergers consented to extending the deadline by which National Express was required to announce its intentions to 16 November. The deadline was later postponed to 14 December.