Half-year financial results in line with expectations
· Earnings per share 13.6 pence (H1 2017: 12.7 pence )
· Adjusted earnings per share* 13.6 pence (H1 2017 restated**: 13.9 pence )
· Interim dividend maintained at 3.8 pence per share
· Profit before tax £96.7m (H1 2017: £89.5m )
Positive progress in all divisions
· Management action on regional UK bus pricing, services operated and commercial initiatives - delivering in line with expectations
o Revenue per vehicle mile up 2.7%
o Journeys per vehicle mile up 0.3%
· Positive London Bus tender outcomes: 4.5% net increase in vehicle miles
· Improved revenue trends in North America
· Progress and opportunities in UK rail market
o Progressing negotiations with Department for Transport on new Virgin Trains East Coast contract
o Extension of East Midlands Trains franchise to March 2019 confirmed, with plan for further Direct Award franchise beyond that
o Good progress towards new Virgin Trains West Coast Direct Award franchise from April 2018
o Shortlisted for new South Eastern franchise
o UK rail franchises moving to a more balanced risk profile
· No change to expectations of 2017/18 earnings per share
Chief Executive, Martin Griffiths, said:
"I am pleased to report half-year financial results in line with our expectation and an interim dividend maintained at 3.8 pence per share.
"We have made positive progress across our businesses. In UK rail, we are working with the Department for Transport towards new contracts at Virgin Trains East Coast and Virgin Trains West Coast. Our East Midlands Trains franchise has been extended through to March 2019, with the prospect of us agreeing a further direct award franchise from March 2019, and we are part of shortlisted bids for new South Eastern and West Coast Partnership franchises.
"In bus, the actions we have taken on pricing, services operated and commercial initiatives across our regional UK bus operations are delivering the results we expected, while our London bus business has had success in winning new contracts. In North America, we have seen improved revenue trends, new contract wins and growth in profit.
"We are focussed on making further progress in the second half of the year and have maintained our expectation of full year adjusted earnings per share."
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