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UPDATE 1-Stagecoach says trading remains strong

Published 04/28/2011, 03:29 AM
Updated 04/28/2011, 03:32 AM

* UK rail 48 weeks like-for-like sales up 6 percent

* UK bus 48 weeks like-for-like sales up 2.2 percent

* Shares up 1 percent

(Adds detail, background)

LONDON, April 28 (Reuters) - British transport group Stagecoach on Thursday reported sales growth at all its units and said it was positive on future prospects.

"The overall profitability of the group has remained strong, with good ongoing cost control and all divisions showing revenue growth in the current year," the company said in a statement.

"We believe the prospects for the group remain positive."

Like-for-like revenue at its UK rail business, which includes the South West Trains London commuter franchise, grew 6 percent in the 48 weeks to April 3, while Virgin Rail, in which it owns a 49 percent stake, achieved sales growth of 12.1 percent.

Stagecoach, which last year re-entered the London bus market after buying the East London Bus Group, said sales at its UK bus unit rose 2.2 percent in the same period.

The company's North American coaches operation posted an 8.3 percent rise in underlying revenue in the 11 months to March 31.

Shares in the company were up about 1 percent at 238.7 pence at 0720 GMT on Thursday, valuing the business at just over 1.7 billion pounds ($2.82 billion). (Reporting by Adveith Nair; editing by James Davey) ($1=.6035 Pound)

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