22/06/2005
Highlights
- Strong year of organic growth in bus and rail operations in UK and overseas
- Further growth in UK Bus division
- Turnover up 10.8%
- Kick Start and telemarketing initiatives successfully introduced
- Investment in fleet, new product development and online sales
- Passenger volumes+ up 1.5% in non-London operations; turnover up 7.1%
- Turnover in London bus business up 21.0%
- Operating margin* maintained at 11.5%, despite significant increases in fuel and other costs
- Excellent performance by UK Rail division
- Turnover up 9.2%
- South West Trains passenger volumes increased 4.8%
- Significant improvement in punctuality
- First London operator to complete replacement of slam-door trains
- Shortlisted for Greater Western, Thameslink/Great Northern and Integrated Kent rail franchises
- Strong growth in North American operations
- US$ turnover growth of 12.7% from continuing operations
- Operating margin* up from 4.4% to 6.7%
- 28.6% more tickets sold at New York Sightseeing
- Market-leading position maintained in New Zealand, despite competition and cost pressures
- Management team strengthened with appointment of Ian Dobbs as Chief Executive of Rail division
* excluding restructuring costs, goodwill amortisation and exceptional items
+ excluding megabus.com
Financial Highlights
- Turnover from continuing operations £1,787.6m (2004: £1,641.1m)
- Total operating profit** £156.7m (2004: £147.5m)
- Operating profit £132.8m (2004: £129.7m)
- Profit before tax** £136.8m (2004: £120.2m)
- Profit before tax £108.3m (2004: £95.8m)
- Earnings per share** 9.0p, up 34.3% from 6.7p
- Full year dividend up 13.8% to 3.3p (2004: 2.9p)
- Free cash flow £173.6m (2004: £209.5m)
- £241.3m of capital returned to shareholders
** excluding goodwill amortisation and exceptional items
Commenting on the results, Chief Executive, Brian Souter said: “We have achieved strong organic growth in our bus and rail operations in the UK and overseas, delivering on our strategic objectives for the Group. This excellent performance has been driven by increased investment, innovation, targeted marketing and a clear focus on first-class service delivery.
“Our Rail division has performed particularly well, benefiting from the introduction of new trains and a significantly improved operational performance. We have delivered impressive growth in the UK in both our provincial and London bus operations as a result of our Kick Start initiatives, sector-leading telemarketing campaigns and online sales. A focus on our core markets, supported by complementary bolt-on acquisitions, has resulted in further revenue growth in North America. In New Zealand, where we are the largest bus operator, we have performed well in a difficult market.
“These strong results have been achieved despite significant cost pressures in the transport sector, particularly on fuel prices. We are well placed to benefit from new rail franchising opportunities in the UK and I am confident our cash-generative portfolio will produce further significant growth.”
Enquiries to: Martin Griffiths, Stagecoach Group +44 (0) 1738 442111
Steven Stewart, Stagecoach Group +44 (0) 1738 442111 or +44 (0) 7764 774680
John Kiely, Smithfield Financial +44 (0) 20 7360 4900
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