3 Apr 2019 07:00
Trading statement
3 April 2019
Introduction
Ahead of a series of meetings with analysts, Stagecoach Group plc is today providing a trading update for its financial year ending 27 April 2019. We have seen further strong trading and positive progress in the UK Rail Division, resulting in an increase in our expectations for adjusted earnings per share from when we announced our interim results in December 2018.
Revenue growth
Like-for-like revenue growth for the financial year to date in each of the Group's main businesses is:
UK Bus (regional operations) - forty four weeks ended 2 March 2019 3.4%
UK Bus (London) - forty four weeks ended 2 March 2019 1.3%
North America - ten months ended 28 February 2019 (1.4)%
UK Rail (excluding Virgin Trains East Coast) - forty four weeks ended 2 March 2019 1.4%
Virgin Rail Group - forty four weeks ended 2 March 2019 6.7%
UK Bus (regional operations)
Revenue growth is similar to that reported in the first half of the year, with tender revenue continuing to grow as we increase our market share in that area of business.
Like-for-like vehicle miles operated were 0.5% lower than in the previous year. Like-for-like revenue per vehicle mile grew 4.0% and like-for-like revenue per journey also increased 3.6%.
UK Bus (London)
We have undertaken a detailed review to identify opportunities to improve our performance on tenders for Transport for London contracts. The bidding environment remains highly competitive and this will continue to exert pressure on the profitability of our UK Bus (London) Division. However, our priority remains securing contracts at a sustainable level where the financial returns reflect the capital invested.
North America
The like-for-like revenue decline of 1.4% for the Division includes 1.9% decline for megabus.com North America. Trading at the other businesses in North America remains in line with our expectations. As previously reported, we expect the disposal of the North America Division to complete before the financial year end.
UK Rail and Virgin Rail Group
The financial performance of our rail businesses is ahead of our expectations, with continued good underlying revenue trends. We have continued to make progress in achieving favourable outcomes from concluding industry charges and contractual matters associated with the expired South West Trains franchise, resulting in additional profit being recognised in the current financial year.
Preliminary results
The next planned update is the announcement of the Group's preliminary results on Wednesday 26 June 2019.
Revenue growth reporting
We currently provide two scheduled trading statements each year in addition to two results announcements. The trading statements provide like-for-like revenue growth percentages for each division. While we plan to continue making two trading statements each year, we will stop systematically providing formulaic revenue growth figures in those statements. We feel that the provision of such data four times a year puts too much focus on short-term factors, and distracts from an assessment of the longer term prospects of the Group.
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 07764 774680
Notes
(1) Like-for-like revenue growth is derived, on a constant currency basis, by comparing year-to-date revenue with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods.
(2) This announcement contains certain forward-looking statements with respect to the financial performance, financial position and businesses of Stagecoach Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Stagecoach Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.