Stagecoach’s revenue growth is slowing as recession continues to take its toll on the transportation sector, the company said yesterday.
Revenues in the UK rail division – which includes Southwest Trains and East Midland Trains – climbed by a meagre 0.9 per cent year-on-year in the three months to the end of July, compared with the healthier 6.2 per cent growth rate over the previous 12 months. At Virgin Rail group, which is 51 per cent owned by Sir Richard Branson and 49 per cent by Stagecoach, revenues grew by 1.7 per cent.
The UK bus division performed slightly better, recording 4.4 per cent growth. And in the US, the group’s bus division came in 5.8 per cent up year on year.
“Trading conditions across the group, and at our rail businesses in particular, remain challenging and we are experiencing further reductions in the rate of revenue growth,” the company said. “We continue to take action to control the cost base of our operations. Our bus businesses, whilst not immune to changes in economic conditions, benefit from a robust and flexible business model and are well positioned to trade through the economic cycle.”