Steve Allen 4am - 7am
Stagecoach notches up revenues of £1.2 billion as bus demand recovers
29 June 2022, 14:44
The group saw underlying pre-tax profits more than double to £44.1 million for the year to April 30.
Bus giant Stagecoach said it has “firmly returned to growth” following recovering customer demand after the pandemic as revenues rose to £1.2 billion.
The group saw underlying pre-tax profits more than double to £44.1 million for the year to April 30, up from £17 million the previous financial year, with revenues up 27%.
The transport firm added that passenger journeys and commercial sales were at roughly 81% and 91% of pre-Covid levels, respectively, for the week ended June 18.
The figures come just days after German asset manager DWS completed its takeover of Stagecoach in a deal worth £595 million.
Martin Griffiths, Stagecoach Group chief executive, said: “I am pleased to report that we have firmly returned to growth in the full year.
“We are in a good financial position, supported by recovering customer demand and continued investment grade credit ratings, as we look to the next phase of our journey under new ownership.”
He added that the company is “not immune from the global macro-economic headwinds”.
“However, we believe our good value public transport services offer consumers help in managing the cost-of-living challenges and high fuel and energy prices, supporting our ambitions around modal shift from car to bus,” he said.
The average price of diesel now stands at 199p a litre, a fraction of a penny below the record of 199.1p a litre set on Saturday.
The full-year figures follow a spate of tube and rail strikes that took place on June 21, 23 and 25, in which 80% of services were disrupted.
Despite the transport giant’s profit hike, it said it would not resume dividend payments to shareholders.
“We will keep our dividend policy under review, taking account of the recent change in ownership of the company and a continuing commitment to seek to maintain an investment grade credit rating.”