Stagecoach may be keen to catch the Millennials’ eyes with swanky new websites and mobile apps, but at the company’s latest shareholder meeting it was the older generation that was out in force.
And while buses did feature when the floor was opened to questions, the main preoccupation of the day was the company’s train services.
Given that chief executive Martin Griffiths pointed out that UK rail had “seen lower rates of growth in the last 12 months than previously”, this is no surprise. Add in the fact that Stagecoach is in the midst of a multi-million pound investment in its rail business and it’s a wonder that buses featured at all.
While winning the East Coast Main Line franchise along with joint venture partner Virgin Trains boosted Stagecoach’s revenue by £700m in the last financial year, thanks to the deal the business is also investing substantial amounts in improving the customer experience along the line.
In total £140m will be ploughed into the rail business, with already-refurbished trains and lounges set to be complemented in 2018 by the addition of 65 low-emission trains that have the capacity to hit speeds of up to 140 miles an hour.
The sheen was taken off this boast by one shareholder pointing out that speeds of 140 miles an hour are moot when the line itself is only rated for a maximum of 125 miles per hour.
Not that Griffiths was to be dissuaded. “We want to do it at least on part of the East Coast Main Line,” he said.
It is an optimism the company is bringing to its ongoing bid for the South West Trains franchise, which sees Stagecoach pitted against rival bidder FirstGroup.
“There are no guarantees but we’re approaching it with a good mindset – we have big plans for it,” Mr Griffiths said.
So will FirstGroup.
The outcome of the bidding, whatever way it goes, will be a big deal for both of Scotland’s big stock market-listed transport companies.
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