Wheels come off growth at Stagecoach

The depths of the crisis at South West Trains was laid bare today as operator Stagecoach admitted underlying revenue growths have plummeted.

The latest figures sparked fears of just how lossmaking the Waterloo-based train company could become after analysts earlier this summer forecast a dive into the red of £150 million at SWT.

Stagecoach today said in May, June and July, like-for-like revenue growth at SWT and its other wholly owned train franchise, East Midlands Trains out of St Pancras, came in at 0.9%.

That is a slump compared with the 6.2% growth reported the previous 12 months. Although Stagecoach declines to break out figures, much of that decline is believed to be at SWT as East Midlands has hitherto been performing well.

This piles the pressure on Stagecoach founder and chief Brian, Souter who is currently engaged in a furious row with the Department for Transport over just when the taxpayer might begin to bail out struggling SWT.

The DfT has said SWT cannot expect any financial help until 2011. Souter has called the DfT "either dysfunctional or deceitful".

What is hurting SWT is the disappearance of first-class passengers while leisure travellers are declining.