profits

plunge TRANSPORT group Stagecoach, owner of bus service Oxford Tube, yesterday dived £316.5m into the red after being hit by costs relating to its US bus business.

The pre-tax losses for the year to April 30 compared with a £182.3m profit in the previous 12 months.

Figures were hit by a one-off cost of £376m after its Coach USA business did not meet profit hopes.

Stagecoach, which also owns South West Trains and 49 per cent of Virgin Rail, said the year had been one of consolidation.

Chief executive Keith Cochrane said: "Our priority this year has been to consolidate our existing operations and put in place a firm foundation for growth."

He added: "Stagecoach is committed to the future of railways in Britain, and the group, through Virgin Rail and South West Trains, has now arranged financing for more rolling stock than any other train operator."