Scotland business

Transport firm Stagecoach sees growth slow

Stagecoach bus Image copyright Stagecoach

Transport firm Stagecoach has reported stalled progress on its bus revenues and slow growth on trains.

The Perth-based firm issued a trading update on Wednesday, showing UK bus use was down nearly 2% between last May and this month.

This was due to "weak underlying economic conditions in some parts of the UK".

Revenue has also been affected by sustained lower fuel prices, meaning potential users are opting to use cars.

That has been a bigger problem still in its US operations. By cutting back on Megabus.com services in North America in response to lower demand, revenue was down more than 5%.

However, revenue per vehicle mile was up nearly 3%.

The rail services run by Stagecoach saw revenue rise, but at a slower rate than in recent years.

It did best on the west coast route, due to comparisons with the previous year, when there was lengthy line closure between Carlisle and Glasgow.

Stagecoach suffered a blow earlier this week, when it lost the competition for the South West trains franchise. It was beaten by Scottish rival FirstGroup, which bid in an alliance with MTR, the company which runs Hong Kong's metro.

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