Fuel cost and climate fears boost Stagecoach

Jun 25 2008

TRANSPORT group Stagecoach said environmental fears and higher fuel costs were sparking a “fundamental shift” towards public transport as it unveiled big revenue rises for bus and train operations today.

The Perth in Scotland-based firm said like-for-like revenues rose 13.6% at its train arm - which includes South West Trains and East Midland Trains - and 7.5% at its UK bus division.

They helped the group post underlying pre-tax profits of £174.4 million for the year to April 30, marginally ahead of market expectations.

Chief executive Brian Souter said: “We believe there are growing signs of a fundamental positive shift in customer attitudes towards public transport, driven by increasing road congestion, rising fuel costs and concern about climate change.”

He said the current financial year had started well, and was encouraged by the “significant potential for further modal shift from the car to bus and train travel”.