28 Apr 2010 07:00
28th April 2010
Stagecoach Group plc
Trading update
Stagecoach Group plc ("the Group"), the leading international public transport group, is today providing an update on trading in advance of a series of meetings with analysts.
Financial performance
The overall profitability of the Group has continued to be strong with improved revenue trends in recent months, and ongoing cost control. The Group now expects full year earnings per share to be at least 17.5 pence. These are ahead of market expectations[1], with the UK Rail Division being the main contributor to the out-performance.
Like-for-like revenue growth[2] for the financial year to date in each of the Group's main businesses is provided below. The growth figures reported were adversely affected by unusually severe weather conditions in December and January.
UK Bus | – forty eight weeks ended 4 April 2010 | 2.9% |
| | |
UK Rail | – forty eight weeks ended 4 April 2010 | 4.0% |
(excluding tram businesses) | | |
| | |
North America | – eleven months ended 31 March 2010 | (4.0)% |
(including Megabus.com) | | |
| | |
Virgin Rail Group | – forty eight weeks ended 4 April 2010 | 9.9% |
Outlook[3]
The Group is seeing improvement in revenue trends, consistent with economic recovery in both the UK and North America. Whilst the sustainability and pace of economic recovery remains uncertain, the outlook for the Group is positive. Coupled with the anticipated reduction in its fuel costs and subject to South Western Trains securing an outcome in its favour at its forthcoming arbitration, the Group expects to deliver increased earnings in the year to 30 April 2011.
Preliminary results
The Group plans to announce its preliminary results for the year ending 30 April 2010 on 23 June 2010.
For further information, please contact:
Stagecoach Group plc www.stagecoachgroup.com
Martin Griffiths, Finance Director 01738 442111
Steven Stewart, Director of Corporate Communications 07764 774680
Notes
[1] On 26 April 2010, Reuters reported consensus median analyst expectations of 16.2 pence for earnings per share (excluding intangible asset expenses and exceptional items) for the year ending 30 April 2010. The Group currently anticipates earnings per share (excluding intangible asset expenses and exceptional items) for the year ending 30 April 2010 to be at least 17.5 pence.
[2] 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.
[3] 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.