Stagecoach Group PLC (LSE:SGC) saw half-year profits rebound strongly as passenger volumes recover while UK government subsidies continue to roll in.
The buses operator said adjusted profit before tax in the half-year ended 30 October shot up to £18.4mln from £0.4mln the year before on revenue that rose to £579.4mln from £454.6mln.
In the group’s regional UK bus business, passenger journeys and commercial sales were running at more than 70% and over 80% respectively of equivalent 2019 levels for most of November until some softening as a result of Storm Arwen and changing Coronavirus (COVID-19) guidance.
The group said in London there was further revenue growth and stable profitability.
“While the pace of recovery may vary, we are well-placed to deliver on the extensive opportunities beyond the pandemic and on the back of the COP26 climate change conference to attract people out of cars to more sustainable public transport,” said Martin Griffiths, the group’s chief executive officer.
"The group maintains a solid financial position with investment-grade credit ratings, substantial available liquidity and appropriate headroom under its debt facilities. We are also continuing to manage effectively the short-term operational challenges in the transport and logistics sector, to protect the future of our transport networks.
"We continue to see a positive outlook for our bus, coach and tram services, whether as a standalone business or as part of a combined future group. Greener and smarter public transport is central to delivering government ambitions around decarbonisation, levelling up of communities, driving economic recovery, and securing better health outcomes for citizens,” Griffiths said.
Shares in Stagecoach were up 1.3% at 77.65p following the release of the interims.