Stagecoach sees positive outlook down the road

BUS and rail group Stagecoach today said that it was encouraged by its trading performance so far this year and flagged a positive outlook over the remainder of the year.

Despite recently missing out on the prestigious contract for the East Coast Mainline, the group said that the new franchises for Manchester's Metrolink and the East Midlands rail routes will help make a "positive contribution" to second-half profits.

It posted the optimistic forecast despite severe weather affecting many of its rail and bus routes. Over the 12 weeks to July 21, Stagecoach said like-for-like revenue growth in its UK bus division had increased by 7.6 per cent, while rail was up 15 per cent.

Its Virgin Rail group had seen a 13.4 per cent boost in revenues, while North America nudged up 4.3 per cent in the quarter to the end of July.

Stagecoach chairman and co-founder Brian Souter said: "The group has made a good start to its financial year ending April 30, 2008, and its financial performance has been ahead of our expectations

."