Owl says: Stagecoach Group plc has announced bad results for the past year and their shares are down 7.5% today. East Devon is heavily reliant on the company for rail services to London on its South West Trains franchise and for bus services throughout the district, where the company has a near monopoly on routes.
Will this be yet more price hikes for rural communities and commuters?
“Stagecoach was forced to take a hefty £84.1mln pre-tax charge on the joint venture with Virgin, as well as an additional £44.8mln write down on the value of the network – one that used to be profitable under public ownership.
The FTSE 250 group said it was in talks with the Department for Transport regarding the terms of the deal and hoped that, with some tweaks, the franchise will return to profitability in 2019. …”