Preliminary Results for the Year Ended 30 April 2013
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26 June 2013 Stagecoach Group plc – Preliminary results for the year ended 30 April 2013 Good performance for shareholders and customers • Earnings per share* up 18.9% to 30.2p, ahead of market expectations • Dividend up 10.3% to 8.6p • Financial results underpinned by strong operational delivery, consistent investment, value-for-money travel, high customer satisfaction and effective partnerships • Current trading in line with management expectations Well positioned for future growth • Consistent and successful strategy with evolution of management responsibilities • Strong financial position enables pursuit of new opportunities • Significant scope to secure additional value in UK rail market • Continued confidence in prospects for megabus.com and acquired businesses in North America • Further innovation with development of new products (e.g. UK sleepercoach) and initiatives (e.g. rail alliancing) Financial summary Results excluding intangible asset Reported results + expenses and exceptional items Year ended 30 April 2013 2012 2013 2012 Revenue (£m) 2,804.8 2,590.7 2,804.8 2,590.7 Total operating profit (£m) 256.3 237.2 235.4 262.9 Non-operating exceptional items (£m) - - (2.2) 11.6 Net finance charges (£m) (37.4) (34.7) (37.4) (34.7) Profit before taxation (£m) 218.9 202.5 195.8 239.8 Earnings per share (pence) 30.2p 25.4p 27.7p 29.5p Proposed final dividend per share (pence) 6.0p 5.4p 6.0p 5.4p Full year dividend per share (pence) 8.6p 7.8p 8.6p 7.8p * excluding intangible asset expenses and exceptional items + see definitions in note 21 to the condensed financial statements Commenting on the results, Chief Executive, Martin Griffiths, said: “This is another strong set of results, which are ahead of market expectations. We have achieved ten years of sustainable growth, reflecting our successful strategy of targeting organic growth in our bus networks, rail franchise opportunities and selected acquisitions. "Stagecoach has secured a leading position in a range of growing markets in the UK and North America. Our innovation can deliver further growth in the commercial, deregulated bus market. We are helping the UK Government to deliver a new, improved rail franchise model and are shortlisted for two rail franchises. Our ground-breaking alliance at South West Trains with Network Rail is producing a more efficient, joined up railway at one of Europe's premier commuter rail networks. In North America, we are focused on converting the transformation our megabus.com business has made in the inter-city bus market into profitable growth. "People, technology and customer service are key to the future. We have strong management teams across our business, which understand their customers. Our investment in new technology also means that we are in a good position to capitalise on the commercial opportunities in the age of the smartphone. "It is no coincidence that we have simultaneously delivered good financial results, strong operational performance, significant investment, value-for-money travel and high customer satisfaction. We are pleased to have played a leading role within the industry, developing strong relationships with government and transport authorities. We have helped transform bus and rail travel for passengers, reducing costs for taxpayers and making a huge positive contribution to our economy, our communities and our environment. "The public transport market has long-term fundamental strengths and a positive outlook. I am confident we can make bus and rail the travel modes of choice for increasing numbers of people in the UK and in North America." Stagecoach Group plc – Preliminary results for the year ended 30 April 2013 1 Copies of this announcement are available on the Stagecoach Group website at http://www.stagecoach.com/investors/financial-analysis/reports/2013.aspx For further information, please contact: Stagecoach Group plc www.stagecoach.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 a leading international public transport group, with extensive operations in the UK, United States and Canada. The Group employs around 36,000 people, and operates bus, coach, train, and tram services. Stagecoach is one of the UK’s biggest bus and coach operators with around 8,000 buses and coaches. Around 2.5 million passengers travel on Stagecoach's buses every day on a network stretching from south-west England to the Highlands and Islands of Scotland. The Group’s business includes major city bus operations in London, Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge. Low-cost coach service, megabus.com, operates between around 60 towns and cities across the UK. 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 inter-city rail franchise. Stagecoach also operates the Supertram light rail network in Sheffield. In North America, Stagecoach operates around 2,800 buses and coaches in the United States and Canada. Megabus.com links around 100 key locations in North America. Stagecoach is also involved in operating commuter and transit, contracted bus services, charters, sightseeing tours and a small number of school bus services. Stagecoach Group plc – Preliminary results for the year ended 30 April 2013 2 Chairman’s statement Stagecoach Group has delivered a good set of results for The Group has achieved good revenue and profit growth in the year ended 30 April 2013. We have achieved ten years the year to 30 April 2013. Revenue was up 8.3% to of growth and sector-leading returns for our shareholders £2,804.8m (2012: £2,590.7m). Total operating profit before and the Group is in a strong financial position. intangible asset expenses and exceptional items was up 8.1% at £256.3m (2012: £237.2m). Earnings per share We have a proven formula for sustainable growth across before intangible asset expenses and exceptional items the Group: strong operational performance, consistent were 18.9% higher at 30.2p (2012: 25.4p), reflecting the investment in our bus and rail services, safe, high-quality growth in operating profit and the earnings enhancing effect and value-for-money travel, high customer satisfaction and of the October 2011 return of cash to shareholders. effective partnerships. Our strategy has ensured that we have been able to make the most of the opportunities for In line with the Group’s strong performance, the Directors growth and successfully negotiate the challenging have proposed a final dividend of 6.0p per share. This gives economic landscape in recent years. a total dividend for the year up 10.3% at 8.6p (2012: 7.8p). The proposed final dividend is payable to shareholders on Stagecoach has the best-performing bus division in the UK, the register at 30 August 2013 and will be paid on 2 which has set the standard for the industry over many October 2013. years. Our commercial regional bus operations are the cornerstone of the Group. We have the lowest fares of any We have made a good start to the 2013/14 financial year. major operator, the highest customer satisfaction of any Current trading is in line with our expectations and the national operator and sector-leading profit margins, which Group remains in a strong financial position. have enabled us to invest several hundred million pounds in new buses in the past six years. On 1 May 2013, Martin Griffiths became Chief Executive of the Group after 13 years as Finance Director. Ross In UK rail, we have continued our record of delivering for Paterson, previously Director of Finance & Company passengers and taxpayers across our passenger rail Secretary, joined the Board as Finance Director. I became franchises and light rail operations. Our work over the past Chairman with the retirement of Sir George Mathewson. year under the South West Trains-Network Rail Alliance Garry Watts became Deputy Chairman, as well as shows we remain at the forefront of new thinking about how continuing as Senior Independent Non-Executive Director. to deliver a more efficient, more joined up and more Gregor Alexander, Finance Director at SSE plc, joined the customer-focused railway. Board in April 2013 as an independent non-executive director. I would like to take this opportunity to thank Sir We are taking a leading role in helping to develop a new UK George Mathewson for his business insight and contribution rail franchising model which we believe can build on the to the Group over the past seven years. clear contribution of private train companies to a growing, high-quality and financially successful UK rail network. Although there has been a transition of individual Following the Department for Transport (“DfT”) management responsibilities, the executive team has been announcement earlier this year regarding its plans, in place for many years and there is no change to the timetable and investment programme for UK rail Group’s business strategy. I am confident the strategic franchising, we have held initial discussions around the direction and management of the business is in good delivery of the planned extensions to our South West Trains hands, with strong governance arrangements and a and East Midlands Trains franchises. The Group is also management team with a record of delivering strong returns shortlisted for the Thameslink and Docklands Light Railway to our shareholders. At the same time, I personally remain franchises, which are due to begin operating in 2014. fully committed to the success of Stagecoach in my role as Chairman and as a significant shareholder North America is the fastest-growing part of our Group.