Never miss an issue of Master Investor Magazine – sign-up now for free!
Transport operator Stagecoach (LON:SGC) beat expectations during the half year ended 27th October, but still booked a statutory pre-tax loss of £22.9 million.
Martin Griffiths, Stagecoach chief executive, commented: “Our strategy is designed to grow our core business, to support innovation, and to position the Group to benefit from future opportunities.
“We have delivered encouraging results at our UK regional bus business, where we continue to deliver high customer satisfaction. Targeted fleet and technology investment is helping to enhance operational delivery and improve cost efficiency. We continue to innovate across a range of areas including autonomous buses, contactless payment, data analytics and demand responsive transport.
“We are well positioned in UK rail, with three live contract bids and more than 20 years’ experience of delivering innovation and investment for customers. We welcome the UK Government’s rail review as an opportunity to deliver better value and day-to-day performance for passengers, a partnership structure and contracting system which is sustainable for the long-term, and reform of outdated regulations which are holding back customer-focused improvements.
“While we recognise the competitive challenges in some of our markets in the UK and North America, we are confident that public transport will be central to delivering Government priorities to grow the economy, connect people and communities, reduce road congestion and improve air quality. We are reviewing strategic options for the North America Division and that includes ongoing discussions regarding a possible sale of all or part of the business.”
The share price of Stagecoach rose by 11.64% to 171.70p.