Stagecoach reports 61 percent profit rise

The Stagecoach Group reported a pre-tax profit increase of 61 percent over the course of the year to the end of April.

Demand for its bus and rail services in the UK and North America grew during the year as public transport become a more preferable option for cash-strapped consumers on both sides of the Atlantic.

Revenues across the group, which is based is listed in London, grew from £2.2 billion to £2.4 billion in the year, with pre-tax profits for the period totalling £209.7 million.

Stagecoach’s chief executive Brian Souter said in a statement on Wednesday that the rising cost of motoring and increased road congestion across its operating regions is helping to bring about a “modal shift” in transport use as “consumers look for better value”.

“We are focused on providing value-for-money products, continuing to invest heavily in our networks, and harnessing the power of the Internet, new technology and social media to attract new customers and make it easier for people to access our services,” he said.

Like-for-like sales at the group’s UK bus division rose by 2.1 percent during a year in which it re-entered the London market via the acquisition of the East London Bus Group for £53 million in October 2010.