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Stagecoach announces 8% rise in annual pre-tax profits

Press Release   •   Jun 26, 2013 11:17 BST

Stagecoach, the Scottish-based company that has extensive bus and coach and operations in the UK, United States and Canada, and which also runs rail franchises in the UK, today announced an 8% rise in annual pre-tax profits.

Full-year pre-tax profit fell to £195.8m from £239.8m a year earlier while revenue increased to £2.8bn from £2.6bn. Across its divisions, revenue at its US operations jumped 28.8% to £641.2m.

Stagecoach, which covers cities including Sheffield and Newcastle, while its coach service megabus runs between 60 towns and cities, has approximately 8,000 vehicles and transports 2.5 million passengers every day.

Chief executive Martin Griffiths, who last month took over the reins from co-founder Sir Brian Souter, said: "We have achieved ten years of sustainable growth, reflecting our successful strategy of targeting organic growth in our bus networks, rail franchise opportunities and selected acquisitions

Operating profits at the group UK rail business surged to £49.9m, from £27.1m a year ago, although profits at its Virgin Rail joint venture - which continues to run the West Coast mainline route while the UK government prepares to put the franchise up for tender again - almost halved to £12.8m.

The company said that it was helping the UK Government to deliver a "new, improved rail franchise model" and said it was shortlisted for two rail franchises.

Scottish rival FirstGroup initially won the contract to run the West Coast rail franchise, with Stagecoach's joint bid with Virgin losing out. However the decision was scrapped because of "technical flaws" in the bidding process.
Stagecoach, along with Virgin, now has an extension to the original franchise until 2017.

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