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I believe the funding is only to break even point for all current registered services. Profit margins can be maintained on all other contracts etc... therefore not a massively profitable time but at all the same not running services at a loss regardless of passenger numbers.
Spot on castle!
low debt, high liquidity, decent results, more govt support, ultra low SP..... Im throwing everything at this and have no concerns. I recently asked all for a better investment right now and got no response, says it all for me!
The funding will benefit all operators and although it is only to plug the gap in the revenue it certainly gives all a massive reassurance. Fair play to the govt for ensuring services will be maintained and Operators futures are protected during this uncertain time. Dividends will remain suspended for now but the future is definitely not as bad as current SPs suggest and SGC are in a good position to rise out of pandemic much better than all big Groups.
Being UK BUS only is an advantage right now!
No point in trying to second guess bottom SPs in current markets but IMO this will double as we exit this horrible year and go into next... and when dividends return that will be another nice bonus! Im buying as much as I can!
"looks like we're about to hit my limit buy price of 47p"
CrystalBB, I assume your all over this now?!
What is going on here, Good Public transport operators can surely not continue to perform this bad? Bus pax numbers increasing weekly, continued funding from Govt, decent annual results yet SP continues to plummet, doesn't make sense even with COVID spikes...
Stagecoach revenue down entirely to lost Rail contracts. UK Bus revenue only down @ 3% with 2 Month of Covid impact included
Not a bad result in the middle of the worst crisis in public transport history!
there is absolutely no chance of SGC going bust but do agree the funding is essential right now and will be for several months.
However every Government realises how essential a good public transport network is to the economy and its workforce and also the concessionary schemes which bring much needed spend to the towns and cities.
The UKs big 4 Bus Operators have bottomed out and ( even FGP!) are sound long term investment opportunities right now and I recommend all to jump on the bus sooner rather than later.
Agree 100%. What is there not to like about these results, SGC and this SP?
As we go thru the phases of relaxing lockdown the government advice on public transport WILL change and passengers will return, not to pre COVID numbers but SGC and the other big operators will cut costs to suit where needed and expand where smaller operators leave opportunities. Stagecoach are masters at adapting regionally and locally.
It will be long slow return but this SP will rise and dividends will return, absolutely no doubt!
ATM UK govt at least are fully committed to Pre Covid subsidies and funding revenue shortfalls while they recommend not using public transport. This will no doubt continue until their message changes then passengers will return in numbers. If they don't return in areas... cloth will be cut to suit and services reduced, simple supply and demand. FGP will recover and as smaller operators fall there will be opportunities for the big Op Cos to take their pick.
Watch SGC results next week for a clearer steer on UK Bus, it will have 2 month + Covid impact!
But also bear in mind Passenger numbers have already gone from 10% at height of Pandemic to 30% + in just a few weeks. This will continue to double and more as holidays and schools return. At this price this is a no brainer!!