Stagecoach Group plc has provided a trading update in respect of its financial year ending
29 April 2017, ahead of a series of meetings with analysts.
The expectation of the Group's adjusted
earnings per share for the year ending 29 April 2017 has not changed
from the announcement in the interim results in December 2016.
Revenue
Like-for-like revenue movements for the financial
year to date, compared with the equivalent period in the previous year,
are provided below.
Virgin Rail Group - forty four weeks ended 4 March 2017 5.3%
Total like-for-like passenger journeys fell by 1.7%
in the UK Bus (regional operations) Division, largely as a result of
weak underlying local economic conditions in some parts of the UK and
sustained lower fuel prices. Stagecoach continually review and adjust our bus
networks in response to changing demand.
The company are continuing to make progress with the digital
investment programme, expanding contactless payments for bus travel,
amongst other measures, to further enhance the quality of bus and
coach services.
The company remain positive on the longer term opportunities within the UK Bus (regional operations) Division.
UK Bus (London)
As expected, UK Bus (London) Division revenue was
0.9% below the equivalent prior year period, reflecting the contract
tenders concluded in the prior year.
North America
Trading at the megabus.com inter-city coach business
in North America continues to improve from the positive actions taken to match services with changes in demand from customers. The
market remains challenging due to the effects of sustained lower fuel
prices, which have heightened car and air competition. The like-for-like
revenue decline of 2.2% for the Division includes a 5.4% decline for
megabus.com North America, but encouragingly revenue per vehicle mile
was up 2.8%.
Trading at the other businesses in North America
remains in line with our expectations. Like-for-like revenue at these
businesses declined by 0.7%, largely reflecting reductions in mileage at the sightseeing business in California.
The UK rail industry
revenue growth has slowed over the last 18 months. Although there has
been improvement in the growth rates, they remain low by historical
standards. Like-for-like rail revenue growth in the UK Rail Division
(including Virgin Trains East Coast) was 1.6% in the forty four weeks,
with revenue growth at inter-city businesses continuing to
out-perform growth at London commuter business. As expected,
revenue growth at Virgin Rail Group's West Coast franchise was higher
than the industry average, which partly reflects revenues being
adversely affected in the second half of last financial year by the
temporary closure of Lamington viaduct in southern Scotland.
The company say the "We continue to work constructively with the
Department for Transport and other industry partners to meet our
obligations, respond to variations in infrastructure and rolling stock
plans, manage contract changes and ensure the continued stability and
growth of our rail businesses"
NOW SEE ALSO THE LATEST ON THE NEW FOCUS FLICKR SITE:
A second set of images of buses and coaches seen recently in Derby is in an album, which can now be viewed by clicking here
NOW SEE ALSO THE LATEST ON THE NEW FOCUS FLICKR SITE:
A second set of images of buses and coaches seen recently in Derby is in an album, which can now be viewed by clicking here
