06/12/2006
Business highlights
- Strong set of results for six months ended 31 October 2006
- UK Bus: partnerships and innovation driving revenue and passenger growth
- “Bus operator of the year” in the UK for second year running
- Rail: further revenue growth and excellent operational performance
- North America: operating profit* and margin* up
- 10-year South Western rail franchise secured
- Disposal of London bus operations in August 2006 for c.£265m
- Shortlisted for East Midlands rail franchise; Virgin Rail Group shortlisted for New CrossCountry rail franchise
Financial highlights
- Proposal to return no less than £400m of funds to shareholders by 30 June 2007
- Revenue from continuing businesses+ up 10.0%
- 7.4% increase in earnings per share*
- Interim dividend up 9.1% at 1.2 pence
| Six months ended 31 October | Results excluding intangible asset expenses and exceptional items | Reported results | ||
|---|---|---|---|---|
| 2006 | 2005 | 2006 | 2005 | |
| Revenue from continuing operations | 752.1 | 653.3 | 752.1 | 653.3 |
| Total operating profit (£m) | 80.7 | 68.5 | 101.5 | 55.3 |
| Profit before taxation (£m) | 77.4 | 57.9 | 97.3 | 40.7 |
| Earnings per share (pence) | 5.8 | 5.4 | 18.9 | 4.1 |
| Interim dividend (pence) | 1.2 | 1.1 | 1.2 | 1.1 |
Commenting on the results, Stagecoach Chief Executive, Brian Souter said: “Our management expertise and commitment to innovation, investment, targeted marketing and strong partnerships have driven excellent organic growth in our UK and North American bus operations.
“We are delighted to have secured a significant revenue stream for the next decade following our successful bid for the South Western rail franchise, and we are encouraged by the potential to develop our rail portfolio. The Group is also focused on developing compelling bids for the East Midlands franchise and, with our joint venture partner, Virgin, for the New CrossCountry franchise.
“I believe we are well-positioned to create further shareholder value and we are confident in the prospects for the rest of the financial year.”
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
* excluding intangible asset expenses and exceptional items (refer to definition of exceptional items contained in note 4 to the interim financial information)
+ excluding acquisitions of Glenvale and Traction
