Stagecoach could sell
PERTHSHIRE PROPERTY SECTION: TURN TO PAGE 38
Perth-based transport giant Stagecoach has revealed it is in talks to sell its North American business.
Stagecoach reported a £22.6 million pre-tax loss for the six months to October 27, and the company says this is due to a writedown of £85.4m on its US division.
Its operations in North American have been hit by increased competition, rising fuel costs, and rising staff costs. Like-for-like revenue for the US division fell by three per cent over the half year period, with megabus.com North America, which is also operated by Stagecoach, falling by 1.7 per cent.
The company’s interim results statement said:“We are reviewing strategic options for the North America division and while that includes ongoing discussions regarding a possible sale of all or part of the business, there is no certainty of a sale at this time.”
Mike Griffiths, Stagecoach’s chief executive, said:“While we recognise the competitive challenges in some of our markets in the UK and North America, we are confident that public transport will be central to delivering government priorities to grow the economy, connect people and communities, reduce road congestion and improve air quality.
“The group is focused on making further progress in the second half of the year and we have increased our expectation of full-year adjusted earnings per share to reflect the above forecast rail earnings the first half of the year.”
He added:“Like-for-like revenue growth has been suppressed during the period, due to the effects on the East Midlands Trains franchise of both the revised timetable necessary to accommodate changes to the Thameslink network effective May and the current year resignalling programme at Derby Railway Station.”
Shares at Stagecoach were up by more than 10 per cent on Wednesday. The head of a popular mens’ craftsmanship group in Perthshire has appealed for aid to find a new premises for its members.
The Kinross Men’s Shed, which encourages awareness of men’s health and wellbeing, and sharing skills and knowledge, is seeking a new place to hang their tools as their current home in the old Forth Wines Unit in the Milnathort Industrial Estate has gone up for sale.
The group meets every Saturday and Wednesday from 10am to 2pm and offers members a free place to share the tools and resources they need to work on projects of their own choosing.
Glen Douglas, chairman of the group, is seeking a place that has heating, allows hot works, space for various crafts and projects, and toilets with the option of adding kitchen facilities.
Glen is hoping a new home will help “sustain membership numbers” and “allow long term planning”.