Stagecoach’s UK rail business saw its Q2 revenues increase in 2014 by 4.9 per cent.
Stagecoach, which owns South West Trains and East Midlands Trains, said its UK rail arm had performed in line with expectations in the face of rising premium payments to the Department for Transport (DfT).
The operator, which also owns a 49 per cent stake in Virgin Trains, said the new West Coast Trains franchise had been trading well since the start of the contract extension term. Stagecoach said it had also been talking to the DfT about extensions to the South West Trains and East Midlands Trains franchises, which it expects to be formally awarded following next year’s General Election.
Publishing its Interim Management Statement, Stagecoach said: “We were disappointed not to have been selected to operate the Docklands Light Railway franchise, but remain optimistic about our prospects in UK Rail.
“We have submitted a bid with Virgin as one of three shortlisted bidders for the new East Coast franchise and we expect the DfT to confirm the operator of that franchise later in 2014.
“Earlier this month, the DfT also confirmed that we are one of three shortlisted bidders for a new TransPennine Express rail franchise.
“It is our intention to bid selectively on future rail franchises where we believe there is the right risk-reward profile and we can add value to our shareholders.”
