Stagecoach Expects More Net Debt; West Coast Rail Franchise Starts April 1
February 05 2018 - 1:01PM
Dow Jones News
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 maryam.cockar@dowjones.com
(END) Dow Jones Newswires
February 05, 2018 13:46 ET (18:46 GMT)
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