(Alliance News) - Stagecoach Group PLC on Wednesday said revenue and profit recovered, as pandemic restrictions eased and passenger demand grew again.
The Scotland, Perth-based transport group said pretax profit multiplied to GBP31.1 million in the six months to October 30 from GBP5.4 million a year prior. This was on revenue of GBP579.4 million, improved 27% from GBP454.6 million.
The public transport provider said the growth in revenue reflects recovering passenger demand across its regional bus and tram services as pandemic-related restrictions have eased.
The company did not declare an interim dividend, unchanged from a year before, but said it was planning to reinstate payouts when supported by "appropriate" profit and cash flow generation.
Stagecoach said its outlook for the current year remained unchanged.
Nonetheless, the company said its long-term outlook is positive since its services are central to delivering government ambitions for decarbonisation.
"We continue to see a positive outlook for our bus, coach and tram services, whether as a standalone business or as part of a combined future group. Greener and smarter public transport is central to delivering government ambitions around decarbonisation, levelling up of communities, driving economic recovery, and securing better health outcomes for citizens," Chief Executive Martin Griffiths said.
Stagecoach said it remains in discussion with National Express Group PLC about a potential merger of the UK's two largest transport providers. The deadline for Birmingham-based National Express to make a takeover offer for Stagecoach has been moved back to December 14. "Regardless of the outcome of those discussions, we see a positive future for our business," Stagecoach said.
Shares were down 2.9% at 74.45 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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