Stagecoach shares drop on FTSE 250 - no final dividend expected this year

In the forty weeks ended 7 February like for like revenue at Stagecoach’s UK Bus operations increased 3.4 per cent, while growth at its UK Rail business grew a little slower by 2.1 per cent. Like for like revenue at Virgin Rail Group increased 8.8 per cent in the same period.

In the nine months ended 31 January revenue in Stagecoach’s North America business fell by 5.2 per cent.

In February Stagecoach said it would be paying a second interim dividend of 4.5 pence per share, following an earlier dividend of 2.0 pence per share. As a result Stagecoach said it would probably not be paying a final dividend for the year ended 30 April 2010.

Stagecoach is currently in the midst of an ongoing dispute with the government over the determination of franchise payments, including revenue support payments. A hearing on the matter is due in May, with a decision expected at some point in the summer.

In a statement Stagecoach, said, “Notwithstanding the continued, uncertain economic outlook in the countries in which the Group operates, overall current trading remains in line with our expectations and we believe the prospects for the Group remain positive.”

By 12:01 shares in Stagecoach were down 1.11 per cent to 178.90 pence per share.