Stagecoach releases half-year results
Today we have seen the release of half-year results for UK transport group Stagecoach, which is currently struggling like all other transport companies in the UK. While profits fell from £100.7 million to £71.2 million for the six months to the end of October the figures would appear to be in line or perhaps slightly better than some analysts had expected and the shares have been marked a touch higher in early trading.
When you look at the turnover figure, which rose from £1.05 billion to £1.08 billion, you might be forgiven for assuming that profits should also have risen. However, there has been a significant increase in the cost of running the business including fuel costs, pension costs and costs associated with the company's rail operations. On a brighter note, when you consider the situation at rival transport group National Express, many Stagecoach investors will be relieved the company is still making significant profits even if trading is difficult.
Thankfully the management has confirmed that trading is currently in line with expectations and no significant shocks are expected in the short term. There were strong rumours of a potential merger of Stagecoach and National Express although National Express is currently undergoing a major financial overhaul and few analysts expect any developments on this front in the short term.
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