Stagecoach pulls out of United States

Scottish-based transport company Stagecoach has pulled out of the US.

The firm, which has its headquarters in Perth, has been running bus services in North America for 20 years, but has had to significantly write down the value of the operation.

Stagecoach has sold its North America division to a private equity firm for $271m (£214m).

It said it planned to concentrate on its bus and rail services in the UK.

Stagecoach had reported a £22.6m pre-tax loss for the six months to 27 October, driven by a writedown of £85.4m on its US division.

Stagecoach said the writedown reflected a “revised view on long-term profitability”.

Its North American operations have been hit by increased competition, as well as rising fuel and staff costs.

Like-for-like revenue for the division fell over the half-year by 3%, with megabus.com North America revenue declining by 1.7%.