Stagecoach (SGC) has started its financial year with “lower than anticipated growth” at the UK bus regional operations, with like-for-like sales up 1 per cent over the 20 weeks to 14 September. Management said this was related to poorer weather this summer and the non-recurrence of prior year revenue from operating bus services related to rail re-signalling work in the Derby area. Stagecoach is looking at branching out into new income sources for its bus operations, including partnerships with airports, festivals, and events around the UK.
The transport group has continued to pursue claims against the Secretary of State for Transport after Stagecoach was disqualified from three rail franchise competitions, with cases due to be heard in the High Court in early 2020. The Department for Transport had claimed that Stagecoach’s bids were “non-compliant” with pension exposure, where bidders were asked to bear full, long-term funding risk on relevant sections of the Railways Pension Scheme. Now that Stagecoach has been excluded from the future rail contact bidding process, any perceived weakness in its bus operations will not be taken lightly.
