This morning Stagecoach have issued the following Trading Statement in advance of a series of meetings with analysts.
.JPG) |
| click to enlarge picture |
The overall profitability of the Group
has remained good, and there has been no significant change to our
expected Group profit before tax for the year ending 30 April 2013.
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) + 3.6% twenty four weeks ended 14 October 2012
UK Bus
(London) - 0.9% twenty four weeks ended 14
October 2012
UK Rail
+ 7.9% twenty four weeks
ended 14 October 2012
North America
+ 10.7% five months ended 30 September
2012
(including Megabus.com, excluding disposed Wisconsin school bus business)
Virgin Rail
Group + 2.7% twenty four weeks ended 14
October 2012
The like for like revenue growth of 3.6%
reported for UK Bus (regional operations) excludes the revenue earned
from the contracts to provide transport for the London 2012 Olympics.
The growth figures do, however, include any indirect incremental revenue
at UK Rail and UK Bus (London) related to the London 2012 Olympics.
The 0.9% decline in revenue at UK Bus
(London) is consistent with our previous expectation that some less
profitable contracts would not be retained as we restructured the
acquired business and improved its overall profitability. This reflects
the revenue lost from contracts that ended during the year to 30 April
2012. For the year as a whole to 30 April 2013, UK Bus (London) is well
placed to maintain revenue with contract losses being offset by some
contract wins and inflationary price increases on existing contracts.
Financial position
In October 2012 the Group issued US$150m
of loan notes in a private placement transaction with United States
investors, which will mature in October 2022. The funds raised by the
issue were used to repay the bank loans that were initially drawn to
finance the July 2012 acquisitions from Coach America and accordingly
the headroom available under existing bank facilities has increased.
Further details are given in the announcement made by the Group on 19
October 2012.
Other events
Rail franchising
On 3 October 2012, the Department for
Transport ("DfT") announced that the competition for the InterCity West
Coast Rail franchise had been cancelled and that the DfT planned to
conduct two independent reviews into both the specific InterCity West
Coast competition and rail franchising more widely. The Group welcomes
the opportunity to participate in these reviews where appropriate.
Twin America
As previously reported, the United States
Department of Justice and the New York Attorney General's Office are
reviewing the Twin America joint venture, which was formed by Stagecoach
North America and City Sights in 2009. We understand that the
authorities are now well progressed with their reviews and will shortly
decide what, if any, further steps they intend to take. Discussions
between the joint venture parties and the regulatory authorities are
ongoing.
Outlook
Overall current trading remains good and the prospects for the Group remain positive.
Interim results
The Group plans to announce its interim results for the six months ended 31 October 2012 on 5 December 2012.
