(Alliance News) - Stagecoach Group on Friday said it is in a solid financial position despite its regional operations struggling to meet previous year levels.
The UK public transport provider said regional bus operations continue to be hurt by Covid-19, with a substantial fall in passenger demand.
Commercial revenue is returning to around 50% to 60% of the prior year levels, with vehicle mileage in excess of 93% of prior year levels.
Stagecoach said: "The recent government announcements to impose further restrictions may discourage public transport use in the short-term."
Outlook for the year remains unchanged, with the company recognising that the uncertainty posed by Covid-19 makes it difficult to predict its financial performance.
London bus operations are seeing a continued strong operational and financial performance, expected to be on par with the year prior.
The rail business continues to make positive progress in unwinding the affairs of the company's former train operating businesses.
Stagecoach said it maintains a solid financial position with investment grade credit ratings and appropriate headroom under its debt facilities.
Chief Executive Martin Griffiths said: "We have a strong business, with good liquidity, devolved operating companies closely focused on our customers and local communities, good financial discipline and a supportive relationship with government and our local authority partners. As well as continuing to provide vital connections to jobs and public services during the current pandemic, our sustainable public transport services are central to long-term plans for a greener, smarter, safer, healthier and fairer country."
Results for the half year ending October 31 are due on December 9.
Stagecoach shares were down 4.0% at 40.25 pence each in London on Friday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
