1. ITV Report

Sluggish rail sales sees Stagecoach profits fall

Losses at East Midlands Trains brings profit decrease in Stagecoach Photo: PA

Perth-based Transport group Stagecoach posted a drop in overall profits today after seeing revenues growth at its rail division slide.

The company says the 44% drop in rail profits for the year to April 30 is due to losses at East Midlands Trains in the first half of the period.

The division grew revenues by 6.6% to £1.14 billion but the performance was below hopes at the time the franchises were awarded and was outstripped by growth in premium payments to the Department of Transport.

Stagecoach reported underlying profits of £202.5 million for the year, compared with £205.7 million a year earlier.

Around 2.5 million passengers travel on Stagecoach's 7,700 buses every day, generating revenues of £909.7 million in the regions and £230.5 million in London. The company also operates 1,900 buses and coaches in the US and Canada, including through its budget service