Stagecoach posts £1.17bn revenue but does not resume dividend

Stagecoach Group raked in £1.17billion price of income over the previous yr, up from £928.2million the earlier yr.

The transport agency’s adjusted working revenue for the yr reached £72.7million, up from £48.1million a yr in the past. 

Passenger volumes and industrial gross sales on the firm’s regional bus arms had been working at round 81 per cent and round 91 per cent of pre-Covid ranges, respectively, for the week ending 18 June. 

The group’s annual backside line for the yr mirrored income progress and funds from the UK and Scottish governments for persevering with public transport companies, it mentioned.

Regardless of remaining ‘optimistic’ about its longer-term prospects, Stagecoach didn’t resume dividend funds for shareholders over the interval. 

It advised buyers that its board ‘didn’t imagine it was applicable to renew dividend funds’.

Nevertheless, it mentioned it might maintain its dividend coverage ‘beneath overview’ taking account of its latest change in possession and its need to take care of an funding grade credit standing. 

The group stays a public restricted firm, however is now majority-owned by Inframobility UK Bidco Restricted, which is not directly owned by a global infrastructure fund managed and suggested by DWS Infrastructure. 

Boss Martin Griffiths mentioned: ‘We’re in a great monetary place, supported by recovering buyer demand and continued funding grade credit score scores, as we glance to the following section of our journey beneath new possession.

‘We’re not immune from the worldwide macro-economic headwinds. Nevertheless, we imagine our good worth public transport companies provide shoppers assist in managing the cost-of-living challenges and excessive gasoline and vitality costs, supporting our ambitions round modal shift from automotive to bus. 

‘Trying forward, public transport stays crucial to financial restoration, wholesome and related communities, levelling up the nation, and delivering a internet zero future, and I’m assured Stagecoach has optimistic long-term prospects.’

The group additionally advised buyers it had made a ‘good begin’ to the yr ending 29 April 2023, and ‘whereas there stays some uncertainty across the tempo of restoration, we proceed to see optimistic long-term prospects for the enterprise’.

It added: ‘As a part of our enterprise technique, we’re persevering with to hunt new alternatives to diversify and develop our enterprise each within the UK and abroad.

‘We’re proud to have received contracts linked to main occasions, together with the forthcoming 2022 Commonwealth Video games in Birmingham, and to have retained current rail alternative contracts.’

Stagecoach additionally mentioned it had seen a ‘substantial’ discount in internet pre-deferred tax pension liabilities, which fell from £263.8million to £29.8million. 

Its internet debt plus internet practice working firm liabilities fell £136.5million from £401million to £264.5million.

On rising motor gasoline costs, Stagecoach mentioned: ‘Our gasoline hedging coverage has minimised the fast influence of this price stress. As well as, we imagine that the elevated price of motoring may help encourage a shift by shoppers to extra sustainable public transport.’