The rail operations of transport company Stagecoach (SGC) continue to disappoint. Management listed six reasons - including weakening consumer confidence and slowing growth in real earnings - why revenue growth in its train division was slowing. Turnover in rail rose just 2.5 per cent, which the company said was reflective of the "more challenging" industry conditions.
The group's European megabus.com business, which is reported on as part of the regional bus division, remains lossmaking partly because investment in building the brand on the Continent is ongoing. Elsewhere, like-for-like sales in North America dropped 3.4 per cent and operating margins in its London bus business were also squeezed, although management still expects these to be in excess of 7 per cent in the long term.