Stagecoach Group plc has today published the following interim management statement, covering available
information for the period to the date of this announcement.
Financial performance
The overall profitability of the Group
has remained satisfactory, and there has been no significant change to
our expected adjusted earnings per share for the year ending 30 April
2014.
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) - twelve weeks ended 21 July 2013 4.5%
UK Bus (London) - twelve weeks ended 21 July 2013 (0.6)%
UK Rail - twelve weeks ended 21 July 2013 6.5%
North America - three months ended 31 July 2013 5.7%
(including Megabus.com)
Virgin Rail Group - twelve weeks ended 21 July 2013 5.8%
UK Bus (regional operations)
Our UK Bus (regional operations) division
has performed strongly during the period. Passenger volumes have
increased year-on-year, which we believe is partly attributable to
better weather. Strongest growth continues to be achieved in our
commercial revenue, with concessionary, tendered and school revenue
growing at a lower rate.
UK Bus (London)
Our UK Bus (London) division has
continued to perform well, as we remain focused on keeping tight control
of costs to ensure we can compete effectively for contracts. The small
reduction in revenue during the period is in line with our
expectations, and is anticipated to reverse in the second half of the
financial year as we begin to benefit from the nine new contracts won
last financial year.
UK Rail
The financial performance of our rail
businesses is in line with our expectations. As we expected, revenue
growth rates since 21 July 2013 have fallen, partly reflecting the
incremental revenue during the period of the London 2012 Olympic and
Paralympic Games.
We continue to
discuss with the Department for Transport (DfT) the planned extensions
to our South Western Trains and East Midlands Trains franchises. We
also continue to progress our bids for the Thameslink and Docklands
Light Railway franchises, and the announcements of the winning bidders
for those franchises are expected in Spring 2014.
North America (including Megabus.com)
Megabus.com in North America is the
fastest-growing part of the Group, increasing revenue by 21.8% in the
three months ended 31 July 2013. This reflects further growth in
existing services, as well as contributions from our Texas and
California networks launched during 2012/13. Overall, the North
American business remains on track to deliver a significant step up in
its operating profit in 2013/14 when compared to 2012/13.
Virgin Rail Group
Virgin Rail Group (VRG) continues to earn
a fee equivalent to 1% of revenue with the DfT taking the risk that
revenue and/or costs differ from those expected. VRG and the DfT are
discussing revised commercial terms that could see VRG take greater
revenue and cost risk for the period from a date to be agreed through to
April 2017 for a commensurate financial return.
Twin America
Sightseeing revenue at our Twin America
joint venture has reduced year-on-year in an increasingly competitive
New York sightseeing market.
Financial position
The Group maintains a strong financial
position with investment grade credit ratings and appropriate headroom
under its debt facilities. Consolidated net debt has, as expected,
remained broadly consistent with 30 April 2013 reflecting continued
strong cash generation, offset by the reversal of favourable working
capital timing differences in the previous financial year.
Outlook
Overall current trading is good and the prospects for the Group remain positive.
