Wednesday, 29 June 2016

Stagecoach Final Results for Year Ended 30th April 2016

'Results in line with overall expectations'


·      Adjusted earnings per share* up 3.7% to 27.7 pence (2015: 26.7 pence)
·      Dividend per share up 8.6% to 11.4 pence (2015: 10.5 pence)
·      £187.0m (2015: £140.9m) net capital investment from strong cash generation
Investing in further enhancing customer experience on bus and rail to drive future growth
·      Sale of "retail" part of megabus Europe to FlixBus
·      Actions to stimulate growth in UK Bus: low fares strategy, digital improvements and continued investment
·      One of two shortlisted bidders for new South West Trains rail franchise
·      Strong financial position - successful re-financing of £400m bonds

·      No significant change to our expected 2016/17 adjusted earnings per share

Commenting on the results, Chief Executive, Martin Griffiths, said: 

"These are a solid set of results, with further revenue and underlying profit growth.  We are experienced at managing the challenges we face, and the improvements and changes we are making now should ensure that we continue to have a strong portfolio of sustainable and growing businesses for the long-term.

"We are investing for growth and improving the journeys of our customers through new digital tools, smarter ticketing, and the introduction of greener and more comfortable buses and trains. At the same time, we are taking a prudent approach to controlling costs and ensuring our transport networks meet the changing conditions and requirements of our customers.

"Our locally-managed bus companies have strong partnerships with local authorities, allowing them to deliver tailored transport solutions to help communities get to work, access health and education, and enjoy shopping and leisure. We have been independently assessed as offering the best value fares of any major UK bus operator and our customer satisfaction levels are amongst the best in the sector.

"We have confirmed the sale to FlixBus of the retailing part of megabus Europe.  I am pleased that we will continue to operate a number of European inter-city coach services as a contractor to FlixBus and we hope to build on that new relationship.

"In North America, we have taken steps to match our inter-city coach services to changing patterns of demand and we are well placed to expand our networks as conditions improve.

"We note the result of the recent referendum in favour of the UK leaving the European Union. As with other businesses, we are closely following developments in this area. Although we have little business in Europe outside the UK, we acknowledge the referendum result may lead to continuing economic, consumer and political uncertainty.

"Like other business sectors, we are affected by reduced public spending and factors in the wider economy, such as weakening consumer confidence and slowing growth in both UK GDP and real earnings. Public transport also faces the challenge from sustained lower fuel prices, the related effects of car and air competition, as well as traveller concerns over global security.  Nevertheless, we have experienced management teams who are working hard to stimulate growth and we have not significantly revised our expectation of 2016/17 adjusted earnings per share.

"We remain positive on the long-term prospects for public transport and the Group remains in a strong financial position."