London buses caught in jams put a brake on Stagecoach’s sales growth, it announced today.
The transport group’s London buses revenue growth was hit by roadworks in Liverpool Street, Tower Hill, the City and routes toward Oxford Street.
It said sales growth was less than expected due to delays that meant it did not get the “quality incentive income” it had expected.
Stagecoach said it is talking to Transport for London about the rescheduling of bus timetables around roadworks to lessen the adverse impact on bus routes.
A variety of reasons has caused the increase in central London roadworks including building projects and utilities maintenance.
A jump in construction work may have been to blame as the latest London Office Crane Survey by Deloitte Real Estate found more than 9.2 million square feet is under construction across central London.
The Scottish-based group also acknowledged it was “disappointed” to have not been selected to operate the Docklands Light Railway franchise.
But despite the London issues, it has won two London bus routes from rival Go-Ahead — 54 and 75 — and said sales were strong across the division, up 14.4% for the 12 weeks to July 20.
Overall trading was “satisfactory” and it is on course to meet “expectations for the year”. Its regional bus network also grew with like-for-like passenger volumes up 0.9% in the 12-week period. Revenue growth was up 4%.
The FTSE 250-listed buses and coaches group, which will hold its general meeting on Friday, said it expects its South West Trains and East Midlands Trains franchises to be formally awarded shortly after the general election next May.
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It also said it is one of three short-listed bidders for a new TransPennine Express and said it will continue to “bid selectively” on other rail franchises.
In the US it is continuing to roll out its Megabus service.
