(Sharecast News) - Stagecoach's first-half profit rose sharply as the bus and coach operator's business revived but it said bad weather and changing Covid-19 guidance had caused business to soften.
Pretax profit for the six months to the end of October rose to £31.1m from £5.4m a year earlier as revenue increased to £579.4m from £454.6m. The company paid no dividend but said it hoped to do so in due course.
Stagecoach said profit growth reflected passengers returning to its services after pandemic restrictions were lifted in July and payments from governments to support public transport.
Passenger journeys were 70% of the level two years earlier and commercial sales were at 80% for most of November, Stagecoach said. It said business weakened recently because of Storm Arwen and slightly stricter pandemic measures.
Stagecoach is in talks to be bought by rival National Express. Stagecoach said its outlook was positive as an independent business or as part of a merged group. Prospects for the year to the end of April are unchanged, it said.
Martin Griffiths, Stagecoach's chief executive, said: "We are pleased at the positive progress of the business as confidence in public transport returns and more customers use our bus, coach and tram services. While the pace of recovery may vary, we are well-placed to deliver on the extensive opportunities beyond the pandemic."
Stagecoach shares rose 1.6% to 77.3p at 08:18 GMT.
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