(MENAFN- ProactiveInvestors)More competition and falling oil prices have hit the UK and North American bus and coach operations of transport operator Stagecoach (LON:SGC). Stagecoach said operating profit in its UK bus division in the year to April 30 fell to £141.1mln from £147.4mln a year ago as its Manchester business faced increased competition from rivals. Rising use of private cars as oil prices fell and costs of challenging plans by Newcastle transport chiefs to introduce a new bus contracting system also hit the bus business. Profits in its UK rail business which includes South West Trains East Midlands Trains and joint ventures with Virgin also fell by 21.6% due to rises in premium payments to the UK government but increases in passenger numbers fuelled an 18.1% rise in revenue. The group has successfully launched continental European long distance Megabus services which it said were doing well but it added it was not currently planning any major expansion of its North American Megabus operations. "Revenue growth in North America has slowed in recent months and we remain cautious on the short-term prospects for megabus.com revenue growth as the year-on-year fuel price drop persists" it said. Group pre-tax profits rose modestly to £185mln from £180.7mln a year ago on a rise in revenue to about £3.2bn from £2.9bn last time. Stagecoach proposed a final dividend per share of 7.3p up from 6.6p a year ago giving a full year dividend per share of 10.5p up from 9.5p beforehand. Chief executive Martin Griffiths said: "Stagecoach has made a satisfactory start to the new 2015/16 financial year and we are in good financial shape. We face a number of challenges but believe that there are opportunities ahead as we continue to invest for growth."
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