Stagecoach shares up 7% on trading update

Shares of Perth-based transport giant Stagecoach rose about 7% on Friday after it published a trading update.

Stagecoach said governments in England, Scotland and Wales and its local authority partners have put in place measures to protect the continuity of local bus services and it expects these measures “to be in place for longer than previously anticipated.”

The company said: “Our outlook for the year ending 1 May 2021 is unchanged from when we announced our half-year results in December 2020.

“While it is difficult to accurately forecast the precise timing and extent of how our profitability will recover as we emerge from the Covid-19 situation, we continue to see good long-term prospects for the business. 

“The UK Government’s recently announced National Bus Strategy for England shows a commitment to increasing bus patronage with significant funding to support that.”

Stagecoach CEO Martin Griffiths said: “We continue to make good progress in delivering our immediate priorities at this time.

“Our focus is on protecting and promoting the health and well-being of our colleagues and customers; working in partnership with government and local authorities to deliver the critical public transport the country and our communities need; and protecting the long-term sustainability of our business …

“We remain confident that there is a strong and positive future for public transport as we emerge from the COVID-19 pandemic …”