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Stagecoach travels abroad
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June 8, 1999: 6:36 a.m. ET
U.K. transport company eyes more acquisitions after 39% profit jump
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LONDON (CNNfn) - Stagecoach Holdings, Europe's largest independent transport company, Tuesday announced a sharp increase in pre-tax profit and plans to boost its expansion in Europe and Asia
Shares in the Scottish-based operator of rail, bus and airport services climbed more than 2 percent after it announced a 39 percent rise in pre-tax to 219.9 million pounds ($352 million) for the year ended March 31. The figure was at the top end of analysts' expectations. Sales climbed 15 percent to 1.548 billion pounds.
"We are now in a new phase with the emergence of truly global transport groups," said chairman Brian Soutar in a statement.
Soutar, who started the company in 1980 with his sister and a single bus, has concentrated on deal-making since hiring Mike Kinski as chief executive from ScottishPower in 1997.
The company, which last week spent 23.5 million pounds on the Italian Sogin bus group, said it aims to expand into the Italian rail market. It already has extensive bus assets in Sweden, Hong Kong and New Zealand, and has launched an acquisition drive in the mainland Chinese bus market through its Road King subsidiary.
The company took a 49 percent stake in the U.K's Virgin Rail franchise and Prestwick airport in Scotland in the past financial year, with those acquisition adding 425 million pounds to revenue.
Stagecoach pounced on the deregulation of rail and bus services in the United Kingdom to become the dominant operator in many bus markets, holding three of the privatized rail franchises. It has expanded aggressively overseas as U.K. government rail subsidies have declined, and has also focused on equipment leasing.
Stagecoach (SGC) shares climbed 2.23 percent to 217 pence in early Tuesday trading. 
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Stagecoach Holdings
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