East coast intercity franchise bidder Stagecoach Group said yesterday it was confident about the future of its rail business.
In an interim management statement (IMS), the Perth-based firm said it expected the Department for Transport to award the new east coast contract later this year.
Stagecoach and joint-venture partner Virgin Trains face competition from Aberdeen-based FirstGroup and a tie-up between Channel Tunnel train firm Eurostar and France’s Keolis.
The east coast route had to be renationalised nearly four years ago after two consecutive private-sector operators bailed out.
Directly Operated Railways took over the services on behalf of the UK Government in November 2009.
They were run previously by bus and train firm National Express, which struggled to make the route profitable, and before that GNER.
In its IMS, Stagecoach said it remained optimistic about the prospects for its UK rail business.
The firm added: “It is our intention to bid selectively on future rail franchises where we believe there is the right risk-reward profile and we can add value to our shareholders.”
Stagecoach said more people got on board its buses this summer it posted a 4% rise in revenue from regional services.
It reported a 0.9% rise in bus passenger volumes outside London for the 12 weeks to July 20.
Across the group, Stagecoach described overall trading as satisfactory after revenue from UK rail operations rose 4.9%.
The firm added: “We remain on course to meet our expectations for the year.”