Sars Hurts Stagecoach in Hong Kong

Stagecoach yesterday revealed a slump in the number of people using its local bus network in Hong Kong as people have been staying at home for fear of catching the deadly Sars virus.

The transport company said revenue from its Citybus business in Hong Kong was likely to be down 25% during April. Stagecoach runs 135 bus routes in the former British colony, which contribute about a tenth of group profits.

A spokesman said the worst affected services were 22 routes serving the city's airport, where airlines have cut their schedules.

The company said its overseas earnings were likely to be £5m lower than last year's £33.4m.

However, it said its other businesses, including South West Trains, were performing in line with expectations. It anticipates profits at the top end of analysts' forecasts - which vary from £80m to £113m for the year to April.