By Kristy Dorsey
Express coach operator Scottish Citylink saw an increase in revenue and profit during 2019, but has warned that the outbreak of Covid-19 will impact its financial performance in the current year.
Accounts now filed at Companies House show that the business, a joint venture between Singapore’s ComfortDelGro and Scottish transport group Stagecoach, enjoyed a 5.4 per cent increase in revenue to £42.7 million during the 12 months to December. Profit before tax rose by 16% to £7.7m, up from £6.6m previously.
Both improvements were the result of service changes and increased patronage, the company said.
READ MORE: Scottish transport giant lays bare extent of Covid impact in annual report
The directors’ report noted that Covid-19 remains a “continuing risk”: “The outbreak of Covid-19 and the subsequent lockdown measures imposed by the UK and other governments as well as the travel and trade restrictions imposed by the UK and other countries in early 2020 have caused disruption to businesses and global economic activity,” the company said.
“The situation remains fluid…due to evolving changes in government policy and business and consumer reactions thereto.”
Scottish Citylink said it has taken actions to reduce its operating costs, which included accessing the Government’s furlough scheme to retain its workers. The company employed 100 people in 2019.
READ MORE: Passenger numbers ‘creeping up’ on bus transport
Directors added that “management are further assured” of Scottish Citylink’s role as a “key strategic industry and accompanying support that will be crucial during the period of economic recovery for the country”.
In January, following a 12% rise in passenger numbers during the previous two years, Scottish Citylink launched a new £7m fleet of 18 coaches operating on its 900 route between Edinburgh and Glasgow. It was billed as Scotland’s largest investment on a single coach fleet replacement, and boosted capacity on the route by nearly a third.
But along with the rest of the transport industry, Scottish Citylink was forced in March to dramatically reduce services across all its routes in response to the coronavirus outbreak. Services have been gradually increased as lockdown measures have eased.
The company paid an interim dividend totalling £3m to shareholders in 2019, followed by another dividend payment of £5m in February of this year. Scottish Citylink is 65% owned by ComfortDelGro, with the remainder owned by Stagecoach.
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