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Stagecoach set to sell North American business

Stagecoach set to sell North American business

North Americans aren't travelling long distances by bus now that airfares are cheaper. This is proving problematic for public transport operators, prompting FirstGroup (FGP) to close part of its Canadian service. Now Stagecoach (SGC) is taking a similar approach, announcing a possible sale of some or all of its North American bus business, including long-distance coach brand Megabus. During the last financial year, the transport group was forced to take an £85.4m non-cash impairment charge "to reflect a revised view on long-term profitability" in the US. This resulted in a £19m operating loss, compared with a £102m profit this time last year, and effectively wiped out statutory pre-tax profits. 

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