(Sharecast News) - Stagecoach has lots its legal claim against the government over being disqualified from bidding for three rail franchises.
The FTSE 250 transport group took action against the secretary of state for transport seeking compensation and a judicial review of the franchise awards, which could have overturned the decisions. The HIgh Court ruled against Stagecoach on Tuesday, the company said.
Stagecoach argued the Department for Transport mismanaged the bid process for the franchises, which included the West Coast Main line and the East Midlands link. It was supported by franchise partners Virgin Trains and France's SNCF.
"We believe there were important issues which needed to be determined by the court to help secure the future of the country's rail system and our view remains that we were right not to accept the risks in these contracts," Stagecoach said. "While we are disappointed at today's ruling, we accept the decision and move on."
The company said with the UK facing the Covid-19 crisis it would concentrate its energies on making sure its existing transport networks were working as well as possible. Stagecoach shares fell 2.4% at 11:10 BST with the FTSE 250 up 0.7%.
30 Jun 2021 14:09
Stagecoach sees revenues slide, but stays upbeat for current year
(Sharecast News) - Stagecoach Group reported a slump in annual profits on Wednesday, after the pandemic hit revenues, but said it was encouraged by progress to date on the roadmap out of lockdown.
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