Stagecoach Group PLC Trading Statement (1615B)
19 September 2018 - 4:00PM
UK Regulatory
TIDMSGC
RNS Number : 1615B
Stagecoach Group PLC
19 September 2018
Trading statement
19 September 2018
Introduction
Stagecoach Group plc is today (19 September 2018) providing a
trading update in respect of its financial year ending 27 April
2019, ahead of a series of meetings with analysts.
We are pleased to have made a good start to the year and our
forecast of the Group's adjusted earnings per share for the year is
broadly unchanged from when we announced our full year results in
June 2018.
Revenue growth
Like-for-like revenue growth for the financial year to date in
each of the Group's main businesses is provided below.
UK Bus (regional operations) - sixteen weeks ended 18 August
2018 3.2%
UK Bus (London) - sixteen weeks ended 18 August 2018 (2.2)%
North America - four months ended 31 August 2018 (3.8)%
UK Rail (excluding Virgin Trains East Coast) - sixteen weeks ended 18 August 2018 2.1%
Virgin Rail Group - sixteen weeks ended 18 August 2018 5.3%
UK Bus (regional operations)
Our UK Bus (regional operations) Division has performed well
during the period, which we believe is partly attributable to the
favourable summer weather throughout the country. We have also
benefitted from revenue earned from providing additional bus
services to replace train services that were affected by planned
resignalling work at Derby railway station. Our expectation is that
revenue growth will moderate over the remainder of the year,
reflecting the one-off benefits in the year to date.
Like-for-like vehicle miles operated were 1.4% lower than in the
previous year, consistent with the plan we set out in June.
Like-for-like revenue per vehicle mile grew 4.7% and like-for-like
revenue per journey also increased 4.7%.
UK Bus (London)
The reported revenue decrease for the UK Bus (London) Division
is in line with our expectation and reflects the impact of
contracts lost in the prior year. Operating costs are higher than
budgeted due to the lag in fuel price rises being reflected in
contract revenue, higher operating costs during the hot weather and
the start-up costs of our new sightseeing service. We are
disappointed with our performance on current year tenders for
Transport for London contracts, which will result in an increase in
the rate of revenue decline later on in the year. Nevertheless, we
continue to see positive opportunities to improve the revenue and
profitability of the Division over the longer term and we will
maintain our discipline in bidding for new contracts.
North America
The like-for-like revenue decline of 3.8% for the Division
includes 1.8% decline for megabus.com North America. megabus
revenue per mile for the period was up 3.8%. Trading at the other
businesses in North America remains in line with our expectations.
Like-for-like revenue at these businesses decreased by 4.7%,
reflecting the benefit in the equivalent period last year from rail
replacement contracts linked to train disruptions on New Jersey
Transit and Long Island Rail Road.
UK Rail and Virgin Rail Group
The financial performance of our rail businesses is broadly in
line with our expectations with continued good profitability at
both East Midlands Trains and Virgin Rail Group's West Coast
Trains.
As expected, revenue growth at our East Midlands Trains
franchise has been suppressed, due to the effects of both the
reduced services to accommodate changes to the Thameslink network
effective May 2018 and the current year resignalling programme at
Derby railway station.
Interim results
The next planned update is the announcement of the Group's
interim results for the half-year ended 27 October 2018 on 5
December 2018.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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