£35m Stagecoach divi

TRANSPORT giant Stagecoach took a £35m dividend out of a rail franchise before hiking fares.

The payout from its East Midlands Trains business was up from £15m the previous year. Accounts show the rise was despite profits sliding 24pc to £19.5m in the year to the end of April.

Labour transport spokesman Andy McDonald said the payout was ‘a major kick in the teeth’ for rail passengers, who have just seen an average increase of 3.2pc to the cost of tickets.

A Stagecoach spokesman insisted last night that it had provided industry-leading services to passengers and paid significant sums to the Treasury, adding that dividend payments were standard practice.