Stagecoach cuts full-year dividend

Stagecoach cuts full-year dividend

The torrid year for the rail business at Stagecoach (SGC) has culminated in a dividend cut, with the annual rate falling from 8.9p in FY2017 to 3.9p this time around. Chief executive Martin Griffiths called the new payout “sustainable”, in that it has been tailored to a level where it can be covered by non-rail cash flows. An interesting comment, considering Mr Griffiths' optimism around the group’s current bids for rail franchises, including South Eastern, East Midlands, and West Coast Partnership.

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