Stagecoach Group plc - Half year results for the six months ended 31 October 2014

10 Dec 2014

Delivering value and pursuing new opportunities in bus and rail markets

  • Adjusted earnings per share* up 3.4% to 15.1 pence (2013: 14.6 pence)
    • No material change to our full year expectation
  • Interim dividend per share up 10.3% to 3.2 pence (2013: 2.9 pence)
  • Continued passenger volume growth in commercialised UK bus market
    • Successful partnership working with government, investment and low fares
    • Significant further investment in technology improvements for customers
    • Working with other bus companies to deliver smart multi-operator ticketing in key city regions during 2015
  • Expansion of megabus.com coach operations in Europe
  • Commercial initiatives to further grow megabus.com in North America
  • Encouraging momentum in UK rail sector
    • New InterCity East Coast franchise due to commence in March 2015
    • West Coast Trains franchise through to 2017 and performing strongly
    • Planning for direct awards of new South West Trains and East Midlands Trains franchises in second-half of 2015
    • One of three shortlisted bidders for TransPennine Express franchise

Financial summary

Six months ended 31 October Results excluding intangible asset
expenses and exceptional items* 		Reported results
2014 2013
 2014 2013
Revenue (£m) 1,545.0 1,473.9 1,545.0 1,473.9
Total operating profit (£m) 129.8 126.5 123.5 120.1
Non-operating exceptional items (£m) - - (4.0) (0.7)
Net finance charges (£m) (21.2) (20.9) (21.2) (20.9)
Profit before taxation (£m) 108.6 105.6 98.3 98.5
Earnings per share (pence) 15.1 14.6 13.9 13.7
Interim dividend per share (pence) 3.2 2.9 3.2 2.9

* see definitions in note 22 to the condensed financial statements

Commenting on the results, Chief Executive, Martin Griffiths, said:

"These are a good set of results, reflecting the strength of our businesses in the UK, mainland Europe and North America.  We have improved further the travel experience for our customers, provided value for money for taxpayers, invested in public transport and added value for our shareholders.

"Strong partnerships between transport operators and central and local government are the best way to maximise the value in public transport for our communities and for our regional economies. We are proud that our record of significant investment, innovation, and low fares has delivered strong transport networks and high levels of passenger satisfaction.

"Despite facing a number of challenges, our sector-leading commercial bus operations in the UK have continued to grow, helping support the economies of some of the country's biggest city regions. Working with other bus companies and building on our existing multi-million-pound digital strategy, we are planning to introduce smart multi-operator ticketing in key city regions during 2015. This transformational initiative demonstrates what can be achieved at local community level without the need for costly and unnecessary regulatory change.

"Our megabus.com branded coach services in the UK, mainland Europe and North America have helped create hundreds of new jobs. We have significantly expanded our footprint in mainland Europe and are encouraged by the opportunities in several countries, including moves to open up the inter-city coach market in France.

"There is encouraging momentum in the UK rail sector, with the award this year of several new franchises.  We have opportunities to add value from both our existing franchises and new contracts, and to improve services for passengers. In particular, we are working closely with Government and Network Rail to provide new trains, extra capacity and a more reliable service for customers.

"We are delighted to have been selected to operate the new InterCity East Coast rail franchise along with our partner, Virgin. Our plans will deliver a transformation in travel for passengers, as well as value for money for the taxpayer. We are shortlisted for the TransPennine Express franchise and look forward to agreeing new franchises with the Department for Transport to extend our time at East Midlands Trains and South West Trains.

"Overall the Group is in excellent financial shape and we are well placed to drive value through new opportunities in our core bus and rail markets. While we have changed our view of the likely divisional mix of profit for the year ending 30 April 2015, with lower expected operating profit from our regional UK Bus and North America businesses broadly offset by other areas, we remain on course to achieve our expected adjusted earnings per share for the year."

Copies of this announcement are available on the Stagecoach Group website at http://www.stagecoach.com/investors/financial-analysis/reports/2014.aspx

For further information, please contact:

Stagecoach Group plc www.stagecoachgroup.com

Investors and analysts
Ross Paterson, Finance Director 01738 442111
Bruce Dingwall, Group Financial Controller 01738 442111
Media
Steven Stewart, Director of Corporate Communications 01738 442111 or 07764 774680
John Kiely, Smithfield Consultants 020 7360 4900

Notes to Editors

Stagecoach Group

  • Stagecoach Group is an international public transport group, with extensive operations in the UK, continental Europe, the United States and Canada. The Group employs around 35,000 people, and operates bus, coach, train, and tram services.
  • Stagecoach is one of the UK's biggest bus and coach operators with around 8,300 buses and coaches. Around 2.8 million passenger journeys are made on Stagecoach's buses every day on a network stretching from south-west England to the Highlands and Islands of Scotland. Low-cost coach service, megabus.com, operates a network of inter-city services across the UK and continental Europe.
  • Stagecoach is a major UK rail operator, running the South West Trains, Island Line and East Midlands Trains networks. It has a 49% shareholding in Virgin Rail Group, which operates the West Coast rail franchise.  It also has a 90% shareholding in Inter City Railways Limited, which has been awarded the contract to operate the East Coast rail franchise from March 2015.
  • Stagecoach operates the Supertram light rail network in Sheffield.
  • IIn North America, Stagecoach operates around 2,400 buses and coaches in the United States and Canada. megabus.com links around 130 key locations in North America. Stagecoach is also involved in operating commuter, transit, contracted, charter and sightseeing services.

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