News Releases

Stagecoach Group plc – Preliminary Results for the year ended 30 April 2012

26 Jun 2012

Business highlights

Maximising shareholder returns

• Adjusted earnings per share* up 6.7% to 25.4 pence (2011: 23.8 pence)
• Full year dividend up almost 10% to 7.8 pence (2011: 7.1 pence)
• c.£340m cash return to shareholders in October 2011

Leading the way in improving transport for passengers

• Growth underpinned by innovation, value for money, investment and operational delivery
• Expansion of megabus.com in North America and Europe
• New Alliance with Network Rail

Pursuit of new opportunities for growth

• Like-for-like revenue up 6.9% across the Group
• Virgin Rail Group’s bid for new West Coast rail franchise submitted May 2012
• Shortlisted for two new UK rail franchises
• US$134m planned acquisition of businesses and assets from Coach America
• Further potential to grow operating profit at acquired London Bus business

Financial summary

	Results excluding intangible asset expenses and exceptional items*		Reported results
Year ended 30 April	2012	2011	2012	2011
Revenue (£m)	2,590.7	2,389.8	2,590.7	2,389.8
Total operating profit (£m)	237.2	240.2	262.9	225.0
Non-operating exceptional items (£m)	-	-	11.6	0.7
Net finance charges (£m)	(34.7)	(34.5)	(34.7)	(34.5)
Profit before taxation – continuing operations (£m)	202.5	205.7	239.8	191.2
Discontinued operations (£m)	-	-	-	18.5
Profit before taxation (£m)	202.5	205.7	239.8	209.7
Earnings per share (pence)	25.4p	23.8p	29.5p	24.6p
Proposed final dividend per share (pence)			5.4p	4.9p
Full year dividend per share (pence)			7.8p	7.1p

* see definitions in note 21 to the condensed financial statements

Commenting on the results, Chief Executive, Sir Brian Souter, said:

“We continue to see good organic growth in our bus and rail services in the UK and North America. This has been supported by our successful mix of innovation, value-for-money travel, continued investment in our services, and strong operational delivery.

“Our UK regional bus operations are delivering good returns with different management approaches applied to respond to the different conditions in each of the markets in which we operate. In London, our turnaround plan is progressing well and we have won new contracts on more acceptable profit margins.

“We are excited about the next phase of our growth plan for our budget coach brand, megabus.com. As well as testing the market in Europe, we are expanding to new locations in North America where the response to the product from consumers has been particularly strong.

“The planned acquisitions from Coach America will enable us to expand our US business at a reasonable price while further underpinning the development of megabus.com in targeted regions.

“In UK Rail, we are pleased that East Midlands Trains has returned to profit and South West Trains continues to perform well. We are involved in shortlisted bids for a number of new franchises. At South West Trains, we are moving forward with our alliance with Network Rail to deliver a more efficient railway and a better service for passengers. We believe this approach can be a model for future franchises and our pioneering work can give the Group first mover advantage.

“Across our business, our new ideas and partnerships are helping shape the future of public transport and the Stagecoach difference is delivering strong returns to our shareholders. We believe the outlook for our bus and rail services is positive and we look forward with confidence to the year ahead.”

Copies of this announcement are available on the Stagecoach Group website at http://www.stagecoach.com/media/news-releases/2012/2012-06-26.aspx

For further information, please contact:

Stagecoach Group plc	www.stagecoachgroup.com
Investors and analysts Martin Griffiths, Finance Director Ross Paterson, Director of Finance & Company Secretary	01738 442111 01738 442111
Media Steven Stewart, Director of Corporate Communications John Kiely, Smithfield Consultants	01738 442111 or 07764 774680 020 7360 4900

Notes to Editors

Stagecoach Group

• Stagecoach Group is a leading international public transport group, with extensive operations in the UK, United States and Canada. The company employs around 33,000 people, and operates bus, coach, rail, and tram services.
• Stagecoach is one of the UK’s biggest bus and coach operators. Around 2.5 million passengers travel on Stagecoach's 7,700 buses every day on a network stretching from south-west England to the Highlands and Islands of Scotland. The Group's business includes major city bus operations in London, Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge.
• Stagecoach is a major UK rail operator, running the South West Trains, Island Line and East Midlands Trains networks. It has a 49% shareholding in Virgin Rail Group, which operates the West Coast inter-city rail franchise.
• Stagecoach also operates the Supertram light rail network in Sheffield.
• In North America, Stagecoach currently operates around 1,900 buses and coaches in the United States and Canada. Budget coach service, megabus.com, links around 90 key locations in North America. Stagecoach is also involved in operating commuter and transit services, as well as tours, charters, sightseeing tours and a small number of school bus services. In May 2012, Stagecoach announced that it had agreed to acquire selected businesses and assets from Coach America, which will further expand its North American business.

View the full announcement of the Preliminary Results

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