Stagecoach on track for full year

Shares in Stagecoach moved higher in early trading exchanges yesterday after the Perth-based public transport giant confirmed it was on track to meet fullyear financial targets.

In a trading update, the company said its expectations for earnings per share for the year to April 28, 2018, were unchanged from previous guidance offered in June.

The update showed a mixed performance within the group’s individual trading arms, with its rail operations outperforming its bus activities.

Both the group’s regional UK bus operation and its London services saw a marginal fall in like-for-like revenues in the 16 weeks to August 19.

The company said its regional units – which take in bus services operated throughout Scotland – had undergone a number of changes with targeted mileage reductions on some routes and selective fare rises.

It said the result had been a 2.8% uplift in revenue per mile on a year-on-year basis and increased yield per journey.

It said its expectation for operating profit from the division for the full year was unchanged.

Revenues in the group’s UK rail operation were 3.8% higher in the 16 weeks to August 29 this year, while its Virgin Rail Group joint venture has seen a 4.4% rise in turnover in the same period.

The group said its North America division was showing signs of improvement, with revenues up 0.8% compared with the previous year.

Shares closed 4.10 up at 168.40.

A Stagecoach bus travels along Carnoustie High Street.