Stagecoach reaps profits from green passengers

Transport company Stagecoach has attributed its significant rise in profits to travellers going green.

The group, which also operates South West Trains and Megabus, said environmental issues played a key role in its passenger number growth, with people opting for alternatives to the car.

Underlying pre-tax profits rose to £162 million, up from £117.1 million, in the year to April 30 while revenues from continuing operations grew by 12 per cent to £1.5 billion.

Stagecoach's bus division, which operates services in over 100 towns and cities across the UK, achieved its fifth consecutive year of growth in passenger volumes.

Stagecoach said it had been working with the Department for Transport to tackle congestion and climate change through a new legislation.

However, not all agreed with Stagecoach's rise in profits. Bob Crow, general secretary of the Rail Maritime and Transport union, said:

"The privateers' pursuit of profit at the expense of our rail and bus industries are strangling both, and real environmental progress will not be made until the government recognises that rail franchising is a wasteful failure.

Gerry Doherty, general secretary of the Transport Salaried Staffs Association said the rail firm had been given the green light to "fleece passengers".

Brian Souter, Stagecoach Chief Executive, said the firm had made a strong start to the new year, with trading in line with expectations.

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