MARTIN Griffiths did not attempt to sugar-coat the challenges facing Stagecoach as he addressed investors at its annual meeting yesterday.

His “bigger picture” analysis revealed his concern over the UK’s fragile economic outlook. Mr Griffiths acknowledged employment levels are high, but emphasised that living standards are under pressure, with real wage growth now in reverse.

Travel habits are changing, too, he noted, with falling fuel prices making it cheaper to travel by private car than public transport, and more and more people electing to do their shopping online. As if all this was not enough, political uncertainty relating to Brexit is weighing on business sentiment, while recent terror attacks are making people twice about their travel plans.

Yet these are not the limit of the concerns at Stagecoach. The company recently took a major hit over its loss-making East Coast franchise.

And, although it has been short-listed for three more franchises, it lost the South West Trains network to FirstGroup. Stagecoach had run the franchise since privatisation in 1996.

Despite the gloomy outlook, and a flagging share price, Mr Griffiths found reasons to be optimistic. He pointed to a growing population, increasing urbanisation, and calls for steps to improve air quality as being positive for the firm. Investment in mobile apps and contactless payments will also improve the service it offers travellers.

Those opportunities may well deliver handsomely for Stagecoach in the long run, but for now its share price remains stuck in the doldrums.