Stagecoach 'on course' to meet FY expectations despite Omicron disruption

Public transport operator Stagecoach Group said on Wednesday that it was "on course" to meet full-year trading forecasts, with both its regional bus and London bus businesses performing broadly in line with internal expectations.

Stagecoach noted that the Covid-19 Omicron variant, and related restrictions, did affect demand for its bus and tram services for a period of time but added that additional recovery grant funding from the Department for Transport for bus services in England had helped offset the financial impact.

The London-listed firm stated it was "pleased" to see a recovery in demand since the easing of Covid-19 restrictions in January and highlighted that prior to the recent period of poor weather, overall journeys for its regional business during the first half of February had ranged between 70% and 78% of pre-Covid-19 levels on a rolling seven-day average.

Looking forward, Stagecoach expects a further recovery in demand for its services, although it also acknowledged that it sees continued forecasting uncertainty in relation to passenger demand, payments from the government to support the continuation of regional bus services during that recovery phase, and cost inflation. It also stated it remains positive on the long-term outlook for the group.

Chief executive Martin Griffiths said: "We are pleased at the continuing recovery in demand for public transport as the country looks to transition out of the pandemic, and we welcome the extension in government funding.

"We continue to see a positive long-term outlook for public transport, which is key to economic recovery, levelling up communities and helping secure the country's net-zero ambitions."

As of 1015 GMT, Stagecoach shares were down 3.53% at 81.03p.