Stagecoach Expects More Net Debt; West Coast Rail Franchise Starts April 1

By Maryam Cockar

Stagecoach Group PLC (SGC.LN) said Monday its net debt for fiscal 2018 could be around 19 million pounds ($26.8 million) higher than it previously forecast because of costs arising from ongoing discussions between Virgin Trains East Coast and the U.K. Department for Transport.

The FTSE 250-listed transport operator said it originally set aside GBP165 million related to a loan agreement for the current Virgin Trains East Coast franchise agreement. But the Department for Transport is seeking an additional amount related to the performance of an outstanding bond.

The company also said the Department for Transport and its joint venture, Virgin Rail Group, have agreed on a new rail franchise for the west coast of England to run from April 1 to potentially March 31, 2020.

Stagecoach said its subsidiary, Alstom Transport UK Ltd., will join the short list to bid for the south east of England franchise, subject to consent from the U.K. government. The company's other subsidiary, Stagecoach East Midlands Trains Ltd., has also been short-listed to receive an invitation to tender for the new East Midlands rail franchise.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

February 05, 2018 13:46 ET (18:46 GMT)

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