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Rail and bus firm aims to save £20m
Transport firm Stagecoach yesterday said it had earmarked an extra £20m in savings at its UK rail business after the division's first-half profits fell by more than half.
The Perth-based company, which operates South West Trains and East Midlands Trains, had previously pencilled in savings of 50m.
About 400 people have left the division under the cost-savings drive, although the company does not anticipate any more job cuts.
Revenues from the UK rail business rose 1.9 per cent to 512.9m in the six months to October 31, but operating profits fell by more than half
to 14.9m, reflecting higher franchise payments to the Government and lower revenue growth.
Underlying pre-tax profits across the group fell 28 per cent to 75.5m during the period, although this was ahead of City hopes.
Stagecoach has helped support rail revenues despite the recession by targeting "staycationers" with budget ticket deals.
The company's cheaper 10 and 5 tickets were snapped up in the summer for holidays at home and day-trips to London, while bookings on
its budget rail product megatrain.com have doubled in the last 12 months and passenger numbers are set to hit more than 500,000.
Stagecoach also runs bus services in more than 100 towns and cities across the UK, stretching from northern Scotland to the south-West.
Like-for-like revenues rose 4.4 per cent to 433m, but the
division's profits dipped slightly to 58.6m after obstacles
including a 8.6m rise in the firm's fuel bill.
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Friday 25 May 2012
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