Stagecoach (LON:SGC) saw its revenue slip in its half year results on Wednesday, also announcing changes to its board.
Shares in the transport group were over 6% higher during Wednesday morning trading.
Stagecoach said in its half year results that revenue dropped to £800.2 million, compared to the £1.01 billion figure recorded during the first half of the year prior.
Additionally, profit before tax amounted to £66.6 million, down from last year’s £73.1 million figure.
Stagecoach added that it has created a simpler and more focused business, as well as updating its strategy.
The business will focus on maximising its core business’ potential in a changing market, managing change through its people and technology to improve and simplify, and grow by diversifying.
The transport group also announced on Wednesday that Sir Brian Souter will be stepping down from his role as Chairman, and will become a non-executive director.
Indeed, Ray O’Toole is set to succeed Sir Brian Souter from 1 January.
“We are pleased to have delivered a solid set of financial results and further improvements for our customers over the first half of the financial year,” Martin Griffiths, Stagecoach Group Chief Executive, commented on the results.
Commenting on the company’s strategy, the Chief Executive said: “Our updated strategy is based on three key objectives: maximise our core business potential, manage change through our people and technology, and grow by diversifying. We have designed the strategy to deliver a sustainable business, diversify our exposure to risk and create value for all of our investors, customers, employees, communities and the environment. Our strategy will continue to be underpinned by a clear focus on safety and customer service.”
“Investment is underway to up-skill our teams, improve our back-office systems and make our business more agile. We are also at the forefront of industry-leading innovation in greener vehicles, autonomous technology, contactless travel, and app-based ticketing and information,” the Chief Executive continued.
“We welcome recent Government pro-bus policy and funding commitments. Combined with our own initiatives and our support for the wider UK bus industry strategy, we are well placed to benefit from the global drive for better mobility, cleaner air and action to protect the future of our planet.”
“Our expectation of full-year adjusted earnings per share remains unchanged.”
Shares in Stagecoach Group plc (LON:SGC) were up on Wednesday, trading at +7.72% as of 09:21 GMT.
