Stagecoach Group PLC Trading Update (3173G)
March 03 2015 - 2:01AM
UK Regulatory
TIDMSGC
RNS Number : 3173G
Stagecoach Group PLC
03 March 2015
3 March 2015
Stagecoach Group plc
Trading update
Stagecoach Group plc ("the Group") is today publishing a trading
update, covering available information for the period to the date
of this announcement.
Financial performance
Since the announcement in December 2014 of the Group's half-year
results to 31 October 2014, the overall profitability of the Group
has remained satisfactory, and there has been no material change to
our expected adjusted earnings per share for the year ending 30
April 2015.
Like-for-like revenue growth for the financial year to date in
each of the Group's main businesses is provided below.
- forty weeks ended 1 February
UK Bus (regional operations) 2015 2.7%
- forty weeks ended 1 February
UK Bus (London) 2015 9.8%
- forty weeks ended 1 February
UK Rail 2015 7.6%
North America (including - nine months ended 31 January
Megabus.com) 2015 1.9%
- forty weeks ended 1 February
Virgin Rail Group 2015 6.7%
UK Bus (regional operations)
We are pleased that on a like-for-like basis, the UK Bus
(regional operations) Division has grown year-to-date passenger
volumes by 0.4% and revenue by 2.7%, consistent with its strategy
to deliver organic growth. Although growth in January was lower
than in the previous months of the year, this was largely due to
year-on-year variations in weather and we do not believe it is
indicative of any change in the underlying rates of growth.
We remain excited at the prospect of further expanding
megabus.com coach services in continental Europe, building on the
success of megabus.com in the UK and North America. Taking account
of our latest expansion plans, we now expect net start-up losses of
around GBP5m for the year ending 30 April 2015 (slightly higher
than our previous expectations) and further losses next year as we
develop this significant opportunity.
UK Bus (London)
Revenue growth in our UK Bus (London) Division has been
satisfactory during the period although some revenue was lost in
January as a result of a 24-hour strike by bus drivers affecting
all major operators of Transport for London bus contracts.
Excluding the previously reported uplift in contract prices to
compensate for the cessation of Bus Service Operators' Grant (a
rebate of fuel duty), revenue increased by 7.3%.
UK Rail
The financial performance of our UK Rail Division is in line
with our expectations, reflecting our focus on growing revenue and
controlling costs to mitigate the substantial increases in premia
payments to the Department for Transport.
The new InterCity East Coast rail franchise began on 1 March
2015 and we are pleased to have taken over responsibility for East
Coast train services together with our partner, Virgin. The new
franchise is expected to significantly enhance the profitability of
the UK Rail Division in the year ending 30 April 2016 and
beyond.
North America
Since December 2014, there has been no significant change to our
expectation of North America operating profit for the year ending
30 April 2015. Like-for-like revenue growth of 1.9% for the nine
months includes revenue growth of 10.3% at megabus.com. The rate of
revenue growth is below that experienced earlier in the year
reflecting (a) the effect of the significant fall in fuel prices on
demand for our services, particularly inter-city coach services on
our megabus.com network and (b) lower revenue growth in December
and January for both megabus.com and non-megabus.com services,
partly due to the effects of adverse weather conditions. The
operating environment in North America remains competitive, but we
continue to see market opportunities within the division.
Virgin Rail Group
Trading to date under Virgin Rail Group's West Coast Trains
franchise remains strong, and under the terms of the franchise
contract, UK taxpayers are benefitting from this performance as
part of a profit sharing agreement with the Department for
Transport.
Twin America
We and our joint venture partner are continuing to progress
towards a settlement with the US Department of Justice and the New
York Attorney General of the previously reported litigation
relating to our Twin America joint venture.
The New York sightseeing market remains highly competitive and
we still expect a relatively low profit from Twin America in the
year to 30 April 2015.
Outlook
Although there are a number of previously reported challenges to
growing profit in the year ending 30 April 2015, overall current
trading is satisfactory and we are on course to meet our
expectations for the year.
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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