Stagecoach Group plc – Half year results for the six months ended 31 October 2012
05 Dec 2012
Strong partnerships delivering revenue and profit growth in bus and rail operations
- Group like-for-like* revenue up 5.9%
- Earnings per share* up 66.3% to 16.8 pence (2011: 10.1 pence)
- Further growth in profit from bus operations
- Growth in rail profit with full effect of revenue support at East Midlands Trains
- Earnings-enhancing effect of October 2011 return of cash to shareholders
- Interim dividend per share up 8.3% to 2.6 pence (2011: 2.4 pence)
- UK Bus (regional operations): Partnership model and successful fares strategy delivering further revenue and operating profit growth
- UK Bus (London): Turnaround of acquired business progressing to plan and profitability improved
- UK Rail: Good revenue growth, increased profitability and strong operational performance. Further development of the alliance between South West Trains and Network Rail
- North America: Further expansion of megabus.com network and good financial performance at recently acquired Coach America operations
- Virgin Rail Group: Nearing agreement for continued operation of West Coast train services and plans to bid for new long-term West Coast franchise when tendered
Planning for the future
- Board / senior management: management succession plan announced in August 2012
- Financial planning: increased financing headroom through US$150m 10-year private placement
- Rail franchising: engaging with UK Government to help deliver a better rail franchising model for passengers, taxpayers and investors
|Six months ended 31 October
||Results excluding intangible asset
expenses and exceptional items*
|Total operating profit (£m)
|Non-operating exceptional items (£m)
|Net finance charges (£m)
|Profit before taxation (£m)
|Earnings per share (pence)*
|Interim dividend per share (pence)
* see definitions in note 21 to the condensed financial statements
Commenting on the results, Chief Executive, Sir Brian Souter, said:
“Our success is built on strong partnerships across our bus and rail networks. We are delivering a better service for passengers, growing our business sustainably and helping support local communities and the economy.
“In the UK, we have achieved further growth in our regional bus operations and we continue to make good progress at our contracted London bus business. Passenger revenue growth remains good on our UK rail networks and we have further developed the alliance with Network Rail at South West Trains.
“We are playing an active part in the UK Government’s review into rail franchising. The private sector has been central to the huge growth of UK rail travel over the past 15 years and it is important that a sustainable rail franchising programme is restarted as quickly as possible.
“Virgin Rail Group has introduced more than 100 new Pendolino train carriages in recent months, boosting capacity on the West Coast mainline. We look forward to it shortly reaching an agreement with the UK Department for Transport for the continued operation of West Coast train services.
“In North America, we are pleased with the performance of the businesses acquired in the summer from Coach America. Our budget coach brand, megabus.com, continues to expand to new regions and we now offer low-cost travel to customers in around 120 locations in the United States and Canada.
“This summer, many of our employees put in a massive effort to deliver a hugely successful transport operation for the London 2012 Olympic and Paralympic Games. I am proud of their achievement and once again I would like to thank them for their professionalism and dedication.
“We see good potential ahead to grow our transport operations in the UK and North America, and we believe the outlook is positive. We are closely focused on the commercial opportunities from our investment in new technology, such as smartcards, digital marketing and social media. These developments are helping customers by making it easier to travel, easier to buy, and easier to get information. Innovation, value for money and strong operational delivery are also key elements of our ongoing programme to drive organic growth and we are making targeted acquisitions where these can add value to the Group.”
Copies of this announcement are available on the Stagecoach Group website at http://www.stagecoach.com/investors/financial-analysis/reports/2012.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
|Steven Stewart, Director of Corporate Communications
||01738 442111 or 07764 774680
|John Kiely, Smithfield Consultants
||020 7360 4900
View the full announcement of the Interim Results
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