UPDATE 2-Stagecoach shrugs off downturn with in-line results
* Year pretax profit 196.4 mln stg vs forecast 195 mln
* Current trading in line
* Confident of favourable outcome in South Western dispute
* Shares rise over 8 percent
(Adds FD comments, shares, analyst , more on dispute)
LONDON, June 24 (Reuters) - British train and bus operator Stagecoach Group Plc (SGC.L) posted a 12.6 percent increase in full-year profit thanks to a strong performance at its bus division and said current trading was in line, boosting its shares.
The group, which operates some 7,000 buses across the UK, posted on Wednesday pretax profit for the year to April 30 of 196.4 million pounds ($323.5 million), just ahead of the consensus forecast of 195 million pounds according to a survey from Reuters Estimates, and earnings per share of 22.9 pence.
Revenue and passenger volume growth slowed in the second half and Finance Director Martin Griffiths told reporters Stagecoach was not going to see much growth in its UK rail division over the next year as the recession hurts demand for both commuter and leisure travel.
Its shares gained over 8 percent, however, as the Scotland-based group said trading was in line, echoing comments last week from rival Go-Ahead Group (GOG.L). [ID:nLH841325]
"I'm not unhappy with what's in the market for this year," Griffiths said. "The market expectation for current year earnings is about 15 pence, down from what we've reported this morning, which reflects our comments on UK Rail."
Panmure Gordon said the results came in slightly ahead of its view and highlighted a strong performance from the bus division.
Astaire Securities analyst Douglas McNeil told Reuters the statement contained several positives.
"Cash generation was good, the dividend was raised and results were in line."
Stagecoach increased revenue 19.3 percent to 2.1 billion pounds and raised the dividend for the year to 6 pence from 5.4 pence.
DISPUTE Continued...
