Stagecoach boss in line for £51m

The boss and founder of transport group Stagecoach is in line for a £51 million windfall after the company unveiled its second huge cash handout in four years.







Brian Souter, chief executive of the Perth-based group, owns 15.1% of the shares and will get a pro-rata share of the £340 million payment, which is in addition to ordinary dividends.



His sister and fellow founder Ann Gloag will get almost £37 million from her 10.9% stake.



The group, which runs the South West Trains commuter franchise and East Midlands Trains, had previously made a special payment of £700 million to its shareholders in 2007, but said strong cash generation since then had enabled it to release more cash.



The decision to make the payment was taken after a full board meeting with all of the non-executive directors present, it added.



The cash return comes just days after passengers were told that regulated fares across the rail network will rise by 8% in 2012.



Stagecoach also issued an upbeat trading statement today showing growth in all of the group's four businesses in the 12 weeks to July 24.



UK buses - where it daily carries 2.5 million passengers on 8,400 buses serving London, Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge - saw revenues rise by 2% on a like-for-like basis over the three months.



UK rail posted revenues up by 8.4%.



The US arm, where it runs coaches in the North East and North central regions of the United States and Canada, boosted revenues by 12.7%, while Virgin Rail, the west coast main line joint venture between London and Glasgow, raised revenues by 11.1%.



"The group has performed well since April 30 and remains on course to meet its expectations of profitability for the year ending April 30," it said.



Shares in the group were one of the few risers on a tough day for markets everywhere, adding 2% at 236p as brokers said the size of the cash return was higher than expected.



Gert Zonnerveld at Panmure Gordon stockbrokers added that the trading outlook was positive with Stagecoach shortlisted for two rail franchises and North America growing rapidly on the back of the expanding Megabus network.

PA

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Adviser - OTE £24,500

£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...

Recruitment Genius: Business Development Executive / Sales - OTE £40,000

£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...

Guru Careers: Research Associate / Asset Management Research Analyst

£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...

The Green Recruitment Company: Graduate Energy Analyst

£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...

Day In a Page

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkish President Erdogan could benefit politically from the targeting of the PKK, says Patrick Cockburn
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn or a return to a Labour government

Our choice is years of Tory rule under Corbyn or a return to a Labour government

Yvette Cooper urged Labour members to 'get serious' about the next general election rather than become 'a protest movement'
Singapore's domestic workers routinely exploited and often abused in the service of rich nationals

Singapore's hidden secret of domestic worker abuse

David Cameron was shown the country's shiniest veneer on his tour. What he didn't see was the army of foreign women who are routinely exploited and often abused in the service of rich nationals
Showdown by Shirley Jackson: A previously unpublished short story from the queen of American Gothic

Showdown, by Shirley Jackson

A previously unpublished short story from the queen of American Gothic
10 best DSLRs

Be sharp! 10 best DSLRs

Up your photography game with a versatile, powerful machine
Solved after 200 years: the mysterious deaths of 3,000 soldiers from Napoleon's army

Solved after 200 years

The mysterious deaths of 3,000 soldiers from Napoleon's army
Every regional power has betrayed the Kurds so Turkish bombing is no surprise

Robert Fisk on the Turkey conflict

Every regional power has betrayed the Kurds so Turkish bombing is no surprise
Investigation into wreck of unidentified submarine found off the coast of Sweden

Sunken sub

Investigation underway into wreck of an unidentified submarine found off the coast of Sweden
Instagram and Facebook have 'totally changed' the way people buy clothes

Age of the selfie

Instagram and Facebook have 'totally changed' the way people buy clothes
Not so square: How BBC's Bloomsbury saga is sexing up the period drama

Not so square

How Virginia Woolf saga is sexing up the BBC period drama
Rio Olympics 2016: The seven teenagers still carrying a torch for our Games hopes

Still carrying the torch

The seven teenagers given our Olympic hopes
The West likes to think that 'civilisation' will defeat Isis, but history suggests otherwise

The West likes to think that 'civilisation' will defeat Isis...

...but history suggests otherwise
The bald truth: How one author's thinning hair made him a Wayne Rooney sympathiser

The bald truth

How thinning hair made me a Wayne Rooney sympathiser
Froome wins second Tour de France after triumphant ride into Paris with Team Sky

Tour de France 2015

Froome rides into Paris to win historic second Tour
Fifteen years ago, Concorde crashed, and a dream died. Today, the desire to travel faster than the speed of sound is growing once again

A new beginning for supersonic flight?

Concorde's successors are in the works 15 years on from the Paris crash