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

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

Day In a Page

Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies