03/12/2008
Highlights
- Strong first-half results – adjusted earnings per share* up 29%
- Interim dividend increased by 33% to 1.8p per ordinary share
- Group in good shape to withstand challenging global economic conditions
- Strong balance sheet enabling further investment for growth
- Continued targeted capital investment
- Shortlisted for South Central rail franchise
- Challenging 2009/10 outlook in UK Rail
- UK Bus revenue still growing strongly - up 11.8% (like-for-like* growth 9.2%)
- Like-for-like* UK Bus passenger volumes up 4.1%: marketing, fleet investment, good value fares and concessionary fare schemes
- Growth in revenue and operating margin in North America
- UK Rail revenue up 50.7% (like-for-like* growth 8.2%)
- Virgin Rail Group poised for significant increase in services
*see definitions in note 25 to the condensed financial statements
Financial summary
| Six months ended 31 October | Results excluding intangible asset expenses and exceptional items |
Reported results | ||
|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | |
| Revenue (£m) | 1,045.0 | 820.8 | 1,045.0 | 820.8 |
| Total operating profit (£m) | 119.8 | 100.0 | 113.3 | 93.8 |
| Net exceptional gains (£m) | - | - | 2.0 | 2.0 |
| Net finance charges (£m) | (14.6) | (15.4) | (14.6) | (15.4) |
| Profit before taxation (£m) | 105.2 | 84.6 | 100.7 | 80.4 |
| Earnings per share (pence) | 12.1 | 9.4 | 9.7 | 9.0 |
| Interim dividend (pence) | 1.8 | 1.35 | 1.8 | 1.35 |
Commenting on the results, Chief Executive, Brian Souter, said:
"We have achieved good growth in our bus and rail operations and the overall trading of the Group remains in line with our expectations for the year ending 30 April 2009. Rising consumer household bills, as well as increasing environmental awareness, are helping drive modal shift to our greener, smarter and good value bus and rail services. We are experiencing particularly strong demand for value-products in both bus and rail.
"The short to medium term outlook for our UK rail operations is challenging and in anticipation of a further deterioration in economic conditions, we are taking action now to ensure our rail businesses remain competitive. Our bus operations in the UK and North America are performing strongly and reporting good organic growth. We expect our bus businesses to continue to perform well through difficult economic conditions."
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 Consultants +44 (0) 20 7360 4900
