27/06/2007
Business Highlights
- Delivering excellent performance and value to shareholders
- Continued growth in earnings per share+ - up 10.4%
- Underlying revenue growth in all core divisions
- Around £700m in value returned to shareholders in May/June 2007
- Dividend increased by 10.8%
- Partnerships and innovation driving growth at UK Bus
- Continued organic passenger growth – like-for-like volumes up 6.6%
- Strong revenue growth– like-for-like revenue up 10.3%
- Like-for-like operating profit up 26.9%
- Strong marketing, competitive fares strategy and concessionary travel schemes underpin growth
- Named UK Bus Operator of the Year
- Excellent performance in UK Rail
- Strong start to new South Western rail franchise
- Revenue up 12.8%
- Contract wins: East Midlands; Manchester Metrolink
- Strong growth in North America
- Operating margin up from 7.1% to 7.9%, excluding Megabus
- Continued strong revenue growth in both scheduled services and leisure markets – constant currency like-for-like revenue up 9.1%
- Expansion of budget inter-city coach service, megabus.com, in United States
- Growth at Virgin Rail Group
- Continued revenue growth on West Coast and CrossCountry franchises
- Winning market share from airlines
- Good prospects for re-negotiated West Coast franchise
- Stagecoach Group Board appointment
- Appointment of Garry Watts as non-executive director
Financial Highlights
- Revenue from continuing businesses* up 8.9%
- 10.4% increase in earnings per share+
- Full year dividend up 10.8% at 4.1 pence
+ excluding intangible asset expenses and exceptional items (refer to definition of exceptional items contained in note 3 to the preliminary financial information)
* excluding 2005/6 acquisitions of Glenvale and Traction
| As reported | and exceptional items |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2007 | 2006 | |||||
| Revenue from continuing operations (£m) | 1,504.6 | 1,343.9 | 1,504.6 | 1,343.9 | ||||
| Total operating profit (£m) | 180.9 | 112.5 | 161.3 | 133.0 | ||||
| Profit before taxation (£m) | 184.1 | 91.5 | 162.0 | 117.1 | ||||
| Earnings per share (pence) | 25.4 | p | 10.7 | p | 11.7 | p | 10.6 | p |
| Proposed final dividend (pence) | 2.9 | p | 2.6 | p | 2.9 | p | 2.6 | p |
| Full year dividend (pence) | 4.1 | p | 3.7 | p | 4.1 | p | 3.7 | p |
Commenting on the results, Chief Executive, Brian Souter said:
“Stagecoach has achieved another excellent operational and financial performance, delivering strongly on our growth strategy for the UK and North America, and providing further excellent returns for our shareholders. The platform for our success has been strong partnerships, market-leading innovation and targeted investment. Combined with bolt-on purchases in our existing markets, we have attracted significant numbers of new passengers to our public transport services.
“We have strengthened our position as a leading rail operator over the past year with new contract wins in both trains and trams. Our excellent partnerships with stakeholders across our UK bus operations have produced consistent organic growth.
“In North America, we have achieved further growth in scheduled services and leisure markets, with the launch of new products and the expansion of our budget inter-city coach service, megabus.com.
“I am pleased to report that we have made a strong start to trading in the new financial year in line with our expectations and we are excited by the potential for future 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 Consultants +44 (0) 20 7360 4900
Note 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 transport company with bus and rail operations in the UK and North America. The Group employs around 27,000 people and runs around 11,000 buses and trains.
