Stagecoach report drop in profits

Perth-based bus company Stagecoach reported this week its profits have plunged by over 90 per cent due to a sharp drop in the number of people using its services because of the coronavirus.

The company published half-year results onWednesday showing it has made just £5.4 million in profit this year so far. Last year it made almost £66 million in profit over the same period.

The results show its revenue in the first six months of the financial year was just £454m compared to £800m the year before.

The company says the disappointing figures reflect a substantial fall in demand for its services due to restrictions on people’s movement and a massive rise in the number of people now working from home.

Chief executive Martin Griffiths remarked:“The safety and wellbeing of customers and our people remains our absolute priority as we continue to navigate the COVID-19 pandemic.

While the situation remains fluid, we have made progress in the restoration of our networks to close to pre-COVID levels and in growing passenger volumes safely.

“We have a strong business, with good liquidity, devolved operating companies closely focused on our customers and local communities, and a supportive relationship with government and local authority partners.”