Stagecoach have published their Interim Results for the six months ended 31 October 2015. They say that they are "good financial results, in line with expectations"
· Adjusted earnings per share* up 12.6% to 17.0 pence (2014: 15.1 pence)
· Interim dividend per share up 9.4% to 3.5 pence (2014: 3.2 pence)
· Investing for growth in regional UK bus markets
o new mobile-friendly website and digital functionality for customers
o smart multi-operator ticketing in English city regions
· Accelerated expansion of megabus.com coach operations in Europe, while North American mileage re-balanced to current demand
· New East Midlands Trains franchise and plan to extend West Coast Trains
· Successful re-financing of £400m bonds, with good financial position maintained
· Cautious outlook
o Recent revenue softer than expected in UK Bus regional operations
o Lower rate of rail and inter-city coach revenue growth since mid-November in UK/Europe
o Modest revision to full-year expectation of adjusted earnings per share
Chief Executive, Martin Griffiths, said:
"These are a good set of results with overall earnings per share in line with expectations.
"We have continued to invest in making
travel better and easier for our customers. Public transport is a shared
responsibility between the public and private sectors. It is crucial
that the investment of transport operators is matched by steps by the
public sector to tackle the growing challenge of road congestion, which
is holding back the potential of the bus. At the same time, shrinking
public investment in local transport can impact on the cost of travel
and the network of services. We look for efficiencies within our own
businesses to protect our customers as far as we can from any impact of
Government cuts.
"Our bus passengers in the UK are now
benefitting from our new UK Bus website, which enables them to check
live running times for their bus services and purchase travel on their
smart phones. In 2016, we will also introduce a
new mobile bus app. In addition, we are on track to complete delivery
of smart multi-operator bus ticketing in England's main city regions
within the next few weeks.
"Our rail businesses have demonstrated
the benefits of a commercially-led approach, with passenger revenue
growth and ongoing investment in improved facilities and better
information for customers. We are working closely with Government and
Network Rail to deliver new trains, greater capacity and more train
services.
"In North America, we have taken steps
to mitigate the impact of lower motoring costs on demand for our
megabus.com inter-city coach services by better matching the level of
vehicle mileage to current demand. The rest of the North America
Division is performing in line with our expectations.
"Overall, the Group is in good
financial shape and we were pleased to have put new bond financing
arrangements in place earlier this year. Challenges remain in our sector
in the short-term but the underlying strength of our businesses across
the UK, continental Europe and North America, means we are well placed
to drive value for our customers and investors."
