TIDMSGC

RNS Number : 9735I

Stagecoach Group PLC

27 March 2018

Trading statement

27 March 2018

Introduction

Stagecoach Group plc is today (27 March 2018) providing a trading update in respect of its financial year ending 28 April 2018, ahead of a series of meetings with analysts. Our expectation of the Group's adjusted earnings per share for the year ending 28 April 2018 has not changed from when we announced our interim results in December 2017.

Revenue growth

Like-for-like revenue growth for the financial year to date in each of the Group's main businesses is provided below.

   UK Bus (regional operations)                   - forty four weeks ended 3 March 2018     (0.1)% 
   UK Bus (London)                                   - forty four weeks ended 3 March 2018     (4.3)% 
   North America                                       - ten months ended 28 February 2018      (0.6)% 
   UK Rail (excluding South West Trains)    - forty four weeks ended 3 March 2018     3.2% 
   Virgin Rail Group                                    - forty four weeks ended 3 March 2018     2.8%

UK Bus (regional operations)

Trading at our UK Bus (regional operations) continues to reflect the actions we took in early 2017 to adjust our pricing and services to respond to changes in customer demand. Vehicle miles operated for the year to date were 2.9% lower than in the equivalent period last year. Revenue per vehicle mile grew 2.9%, journeys per vehicle mile grew 0.2% and revenue per journey increased 2.7%. We continue to maintain our focus on controlling costs.

The reported like-for-like revenue growth has been suppressed in recent weeks by the widespread snowstorms throughout the UK. During the most recent four-week period, our like-for-like revenue declined by 2.5% from the equivalent prior year period, illustrating the scale of the impact of these extreme weather conditions. Excluding the most recent four-week period, like-for-like revenue growth for the forty weeks ended 3 February 2018 was 0.1%.

UK Bus (London)

The reported revenue decrease for the UK Bus (London) Division is in line with our expectation and reflects the impact of contracts lost in the prior year. We remain satisfied by our performance on current year tenders for Transport for London contracts.

North America

The recent revenue trends in North America are lower than growth seen in the first half of the year, reflecting the timing of contract work during the year and more severe weather than our forecasts anticipated over the winter months. The like-for-like revenue decline of 0.6% for the Division includes a 4.6% decline for megabus.com North America, reflecting previously implemented mileage changes at megabus.com with revenue per mile for the period up 1.1%. The other businesses in North America reported like-for-like revenue growth of 1.2% for the year to date.

UK Rail and Virgin Rail Group

We have made further progress in UK rail. Discussions are continuing with the Department for Transport regarding new contractual terms for the Virgin Trains East Coast business, and we have submitted our bid for the new South Eastern franchise. We are progressing work on our shortlisted bid for the next competitively tendered East Midlands franchise and on our shortlisted bid with SNCF and Virgin for the West Coast Partnership franchise. Revenue growth across our existing rail operations has been broadly consistent with the trends seen in the first half of the year.

Preliminary results

We expect to announce the Group's preliminary results for the year ended 28 April 2018 on Thursday 28 June 2018.

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investors and analysts

Ross Paterson, Finance Director 01738 442111

Bruce Dingwall, Group Financial Controller 01738 442111

Media

   Steven Stewart, Director of Corporate Communications                             07764 774680

Notes

(1) Like-for-like revenue growth is derived, on a constant currency basis, by comparing year-to-date revenue with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods.

(2) This announcement contains certain forward-looking statements with respect to the financial performance, financial position and businesses of Stagecoach Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Stagecoach Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

March 27, 2018 02:00 ET (06:00 GMT)

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