Stagecoach Group PLC (SGC) - Trading Statement
RNS Number : 7912P
Stagecoach Group PLC
30 October 2012
30 October 2012
Stagecoach Group plc
Stagecoach Group plc ("the Group") is today providing an update on trading in
advance of a series of meetings with analysts.
The overall profitability of the Group has remained good, and there has been
no significant change to our expected Group profit before tax for the year
ending 30 April 2013.
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) - twenty four weeks ended 14 October
UK Bus (London) - twenty four weeks ended 14
October 2012 (0.9)%
UK Rail - twenty four weeks
ended 14 October 2012 7.9%
North America - five months ended 30
September 2012 10.7%
(including Megabus.com, excluding disposed Wisconsin school bus business)
Virgin Rail Group - twenty four weeks ended
14 October 2012 2.7%
The like for like revenue growth of 3.6% reported for UK Bus (regional
operations) excludes the revenue earned from the contracts to provide
transport for the London 2012 Olympics. The growth figures do, however,
include any indirect incremental revenue at UK Rail and UK Bus (London)
related to the London 2012 Olympics.
The 0.9% decline in revenue at UK Bus (London) is consistent with our previous
expectation that some less profitable contracts would not be retained as we
restructured the acquired business and improved its overall profitability.
This reflects the revenue lost from contracts that ended during the year to 30
April 2012. For the year as a whole to 30 April 2013, UK Bus (London) is well
placed to maintain revenue with contract losses being offset by some contract
wins and inflationary price increases on existing contracts.
In October 2012 the Group issued US$150m of loan notes in a private placement
transaction with United States investors, which will mature in October 2022.
The funds raised by the issue were used to repay the bank loans that were
initially drawn to finance the July 2012 acquisitions from Coach America and
accordingly the headroom available under existing bank facilities has
increased. Further details are given in the announcement made by the Group on
19 October 2012.
On 3 October 2012, the Department for Transport ("DfT") announced that the
competition for the InterCity West Coast Rail franchise had been cancelled and
that the DfT planned to conduct two independent reviews into both the specific
InterCity West Coast competition and rail franchising more widely. The Group
welcomes the opportunity to participate in these reviews where appropriate.
As previously reported, the United States Department of Justice and the New
York Attorney General's Office are reviewing the Twin America joint venture,
which was formed by Stagecoach North America and City Sights in 2009. We
understand that the authorities are now well progressed with their reviews and
will shortly decide what, if any, further steps they intend to take.
Discussions between the joint venture parties and the regulatory authorities
Overall current trading remains good and the prospects for the Group remain
The Group plans to announce its interim results for the six months ended 31
October 2012 on 5 December 2012.
For further information, please contact:
Investors and analysts
Martin Griffiths, Finance Director
Ross Paterson, Director of Finance & Company Secretary
Steven Stewart, Director of Corporate Communications
(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 company news service from the London Stock Exchange
TSTGMMZGNLMGZZM -0- Oct/30/2012 07:00 GMT
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