25/06/2008
Highlights
- Strong performance delivers value to shareholders
- Revenue from continuing businesses up 17.2% at £1,763.6m
- 73.5% increase in earnings per share+ to 20.3p
- Full year dividend up 31.7% at 5.4 pence
- 63.0p per share return of value to shareholders in May/June 2007
- Net debt* - £319.7m
- Increased investment in bus and rail services
- Sector-leading growth at UK Bus
- Sixth successive year of organic passenger volume growth – like-for-like* volumes up 3.6%
- Like-for-like revenue up 7.5%
- Significant margin* enhancement, up to 14.8% from 12.2%
- Innovative products, strong marketing and competitive fares drive growth
- Excellent financial and operating performance at UK Rail
- Strong passenger volume and revenue growth at South Western and East Midlands Trains
- South West Trains – growth in commuter and leisure revenue
- East Midlands Trains – strong start to new franchise
- Performance objectives in North America achieved ahead of schedule
- Operating margin up from 7.9% to 10.1%, excluding megabus.com
- Like-for-like revenue up 4.6%
- Expansion of budget inter-city coach service, megabus.com, in North America
- Growth at Virgin Rail Group
- Continued strong revenue growth on West Coast franchise
- Further growth prospects from December 2008 timetable, requiring consistently reliable infrastructure
+ excluding intangible asset expenses and exceptional items (refer to definition of exceptional items contained in note 20 to the preliminary financial information)
* see definitions in note 20 to the preliminary financial information
Financial summary
| Year ended 30 April | Results excluding intangible asset expenses and exceptional items |
Reported results | ||
|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | |
| Revenue (£m) | 1,763.6 | 1,504.6 | 1,763.6 | 1,504.6 |
| Total operating profit (£m) | 205.3 | 161.3 | 192.3 | 180.9 |
| Disposal (losses)/ gains (£m) | - | - | (1.4) | 2.5 |
| Net finance (charges)/income (£m) | (30.9) | 0.7 | (23.6) | 0.7 |
| Profit before taxation (£m) | 174.4 | 162.0 | 167.3 | 184.1 |
| Earnings per share (pence) | 20.3p | 11.7p | 34.6p | 25.4p |
| Proposed final dividend (pence) | 4.05p | 2.9p | 4.05p | 2.9p |
| Full year dividend (pence) | 5.4p | 4.1p | 5.4p | 4.1p |
Commenting on the results, Chief Executive, Brian Souter said:
“Stagecoach Group has delivered strongly on its growth strategy, attracting more people to its high-quality bus and rail services in the UK and North America. We believe there are growing signs of a fundamental positive shift in customer attitudes towards public transport, driven by increasing road congestion, rising fuel costs and concern about climate change.
“We are leading the sector in offering customers greener, smarter travel to reduce their carbon footprint. In the UK, our bus division has achieved six successive years of organic passenger volume growth and we have expanded our regional bus operations through targeted bolt-on acquisitions. We have strengthened our position as a leading UK rail operator, generating strong revenue growth, winning new contracts and offering consistently high quality of service to our customers. In North America, we are encouraged by the continuing strong performance of our business and we have achieved our objective of an improved operating margin ahead of schedule.
“We have again delivered strongly for our shareholders, raising the proposed dividend for the year by nearly 32%. I am pleased to report that we have made a good start to the new financial year and trading is in line with our expectations. We look forward to further 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 +44 (0) 20 7360 4900
Notes to Editors:
High-resolution photographs are available to the media free of charge at: www.newscast.co.uk (telephone +44 (0) 207 608 1000).
Stagecoach Group is a leading international public transport company with bus and rail operations in the UK and North America. The Group employs around 30,000 people and runs around 12,000 buses and trains.
