(Alliance News) - Stagecoach Group PLC on Tuesday reaffirmed its full-year guidance as it reported a recovery in regional bus demand and said it remains in merger talks with National Express Group PLC.
The public transport operator said regional bus journey numbers were in excess of pre-virus levels by the end of September. Meanwhile, Stagecoach was "pleased with the continued strong operational and financial performance" of its London bus business.
The outlook for the financial year ending in April 2022 was maintained by Stagecoach. Although firm forecasts have not been provided for the year, back in June the company said it was "positive on the long-term outlook" and continued to be confident in its ability to generate positive earnings before interest, tax, depreciation and amortisation and operating profit. It said it would aim to re-build profitability closer to pre-Covid levels as pandemic restrictions were eased.
Stagecoach posted pretax profit of GBP24.7 million in the year that ended May 1 on revenue of GBP928.2 million.
The company said passenger demand continued to recover with journey numbers over 70% of equivalent 2019 levels by the end of September. Vehicle mileage was around 94% of pre-pandemic 2019 levels last month.
Commercial sales were boosted by single ticket sales, favoured over weekly and monthly tickets, reflecting a change in customer travel patterns.
"The momentum in passenger journeys and sales reflects a pick up in activity and travel across the UK, and growing confidence to return to public transport. While there remains some uncertainty around how the recovery continues, our outlook for the year ending April 30, 2022 is unchanged from when we announced our full year results in June 2021," said Chief Executive Martin Griffiths.
Meanwhile, the Perth, Scotland-based public transport company - which operates 8,300 buses, coaches and trams in the UK - added that talks with National Express over a potential all-share merger remain ongoing, with due diligence taking place, but warned there was not certainty a deal will be done.
Stagecoach shares fell 1.2% to 82.00 pence in London on Tuesday morning. National Express shares were down 1.2% to 234.60p.
By Will Paige; willpaige@alliancenews.com
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