29th Apr 2015 07:49
LONDON (Alliance News) - Stagecoach Group PLC Wednesday said its recent trading has been in line with hopes and it is retaining its earnings guidance for the year that ends on Thursday after like-for-like revenue grew in all its businesses, particularly in its London bus and UK rail operations.
The transport operator said like-for-like revenue was up 8.1% in its London bus operations in the 48 weeks to March 29, and was up 9.0% in its UK rail operation. UK regional bus revenue was up 2.4%, while its North American operations reported growth of 1.0%. Revenue in its Virgin Rail Group joint venture in the UK was up 7.6%.
It expects to put out its results for the whole year to April 30 on June 24. It has never detailed its guidance for adjusted earnings per share for the year, but has said its guidance remained unchanged all the way through the year.
A consensus of three analysts provided on Morningstar forecasts that the company will report pretax profit of GBP183.10 million and earnings per share of 26.00 pence in the current financial year. It had reported adjusted EPS of 26.0p and a pretax pre-items profit of GBP180.7 million in its previous year.
The company also said it has now agreed a settlement in principle with the US Department of Justice and the New York Attorney General's office in respect of anti-trust litigation relating to its Twin America joint venture. It said that under the settlement, which still needs to be approved in court, the defendants will have to pay USD7.5 million and relinquish some bus-stop rights.
Stagecoach had previously booked costs related to the litigation as exceptional items, and said Wednesday it doesn't expect the additional costs it now has to take to exceed GBP3 million.
"Twin America's management will now focus on seeking to re-build the business in the highly competitive New York tourism and sightseeing market," it said.
Stagecoach shares were down 1.0% at 362.98 pence early Wednesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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