Stagecoach 'boosted by rail performance'

Date: 29/4/2010

Stagecoach has said its performance over the 48 weeks to April 4th 2010 was ahead of expectations, mainly thanks to strong growth in its rail business.

While the severe weather conditions experienced in the winter months dented performance, growth for the whole period remained positive.

As a result, the group expects earnings per share for the year ending April 30th to be at least 17.5 pence.

Virgin Rail, which the group has a 49 per cent stake in, witnessed the largest growth in revenues, up by 9.9 per cent. Other rail operations for the group were up by four per cent.

The company believes the outlook remains positive, despite the uncertainty of the economic recovery.

An anticipated drop in fuel prices will help the business continue to grow over the next year, Stagecoach said in a statement.

Stagecoach operations in North America, however, did not witness growth, with a four per cent drop being recorded.