Thursday, 29 June 2017

Stagecoach Group

Stagecoach Group plc – Preliminary Results for the year ended 30th April 2017

Adjusted earnings per share in line with expectations
  • Adjusted earnings per share of 24.4 pence (2016: 27.7 pence) in line with our expectations
  • Basic earnings per share of 5.5 pence (2016: 17.1 pence) reflect exceptional charges
  • Dividend per share for the year up 4.4% to 11.9 pence (2016: 11.4 pence)
  • Substantial further investment – net capital expenditure of £157.3m (2016: £187.0m)
  • Our expectation of 2017/18 earnings per share is broadly unchanged
Operational developments
  • Engaged in discussions with Department for Transport on contractual matters at Virgin Trains East Coast, including implications of Network Rail’s reprioritised infrastructure programme
    • £84.1m exceptional charge to provide for anticipated losses under current contract, over the next two years
    • Business expected to be profitable from 2019
    • £44.8m non-cash exceptional impairment of franchise intangible asset
    • High customer satisfaction and around £525m to date in premium payments to taxpayer - average monthly payments around 30% more than made by Directly Operated Railways
  • Shortlisted for new East Midlands and South Eastern rail franchises
  • New joint venture with Virgin and SNCF shortlisted to bid for West Coast Partnership rail franchise
  • Management action taken across our bus operations in response to period of subdued revenue trends – targeted network, pricing and management changes
  • Improving revenue trends and contract opportunities in North America
  • Progress with digital and technology programme, including new initiatives outside of our core operating divisions
Financial summary

Results excluding intangible asset
expenses and exceptional items
Statutory results
2017 2016 2017 2016
Revenue (£m) 3,941.2 3,871.1 3,941.2 3,871.1
Total operating profit (£m) 192.8 228.8 47.3 171.1
Non-operating exceptional items (£m) - - 4.7 (2.0)
Net finance charges (£m) (34.1) (41.4) (34.1) (64.7)
Profit before taxation (£m) 158.7 187.4 17.9 104.4
Earnings per share (pence) 24.4p 27.7p 5.5p 17.1p
Proposed final dividend per share (pence) 8.1p 7.9p 8.1p 7.9p
Full year dividend per share (pence) 11.9p 11.4p 11.9p 11.4p

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

“I am pleased to report adjusted earnings per share for the year in line with our expectations and a further increase in our dividend per share. We continue to manage the business with a focus on sustainable growth over the long-term.
"Our multi-million pound investment in greener vehicles, smart technology and skilled employees is delivering a better and easier travel experience for our customers. Bus and rail services are an important part of achieving long-term growth for our communities and regional economies. We are working closely with public sector partners to deliver the full benefits of high quality public transport for customers and our business.
“We are delivering on our promised improvement programmes for customers and our significant financial commitments to the taxpayer across our existing rail portfolio. There are a number of forthcoming rail opportunities.

“We are engaged in discussions with the Department for Transport regarding our respective contractual rights and obligations under the current Virgin Trains East Coast franchise and reflecting the reprioritisation of Network Rail's infrastructure programme. However, separately we have made financial provisions to reflect the short-term outlook for that business over the next two years, including in view of the weak growth environment affecting the UK rail sector as a whole. We are disappointed to report losses at Virgin Trains East Coast. However, I am confident that we can return the business to profitability and build on the significant benefits we have delivered to date for customers and taxpayers.
“Overall, we believe in the long-term prospects for the business and public transport remain positive.”

and on the subject of the East Coast and Edinburgh.....................


Album 5 has been added to the list and features the other bus types operated by Lothian Buses in Edinburgh. These can now be viewed by clicking  here