26th Aug 2014 08:08
LONDON (Alliance News) - Stagecoach Group PLC said Tuesday that overall profitability remains "satisfactory" and that there has been no material change to its expected adjusted earnings per share for the full-year as it recorded like-for-like revenue growth across its businesses.
In an interim management statement for the twelve weeks to July 20, 2014 the transport provider said the UK Bus (regional operations) division saw 4.0% growth in like-for-like revenue, with higher commercial revenue contributing the most as concessionary, contract, tendered and school revenue continued to grow.
UK Bus (London) recorded a 14% rise in like-for-like revenue, said Stagecoach, due to the commencement of two new contracts and the continuing effect of contracts won last year. "Revenue growth has, however, been a little less than expected due to quality incentive income being adversely affected by traffic disruption related to continuing road works," the company added.
UK Rail like-for-like revenue for the twelve weeks was up 4.9%, said the company, with the division performing in line with its expectations and said that it remains optimistic about its future prospects, despite losing out n the Docklands Light Railway Franchise earlier in the year.
In UK Rail, Stagecoach said "we continue to focus on growing revenue and controlling costs to mitigate the substantial increases in premia payments to the Department for Transport... We continue to discuss with the DfT the planned extensions to our South West Trains and East Midlands Trains franchises, and now expect that these will be formally awarded shortly after the UK General Election in May 2015."
The Virgin Rail Group division has seen "strong trading," said Stagecoach, with like-for-like revenue up 5.7% in the 12 weeks to July 20.
For the three months to July 31, 2014, Stagecoach said like-for-like revenue in its North America business, including Megabus.com, rose 4.9%. "Revenue growth in North America remains encouraging, reflecting the continued expansion of our Megabus.com services. Megabus.com increased revenue by 14.9%," said the FTSE 250-listed company.
"The overall profitability of the Group has remained satisfactory, and there has been no material change to our expected adjusted earnings per share for the year ending 30 April 2015," said Stagecoach.
In its full-year results in June the transport provider said pretax profit came in at GBP158.0 million, up from a restated GBP154.3 million last year and revenue rose to GBP2.93 billion for the year, up from a restated GBP2.80 billion in 2013, boosted by orders for over GBP110 million of new greener buses for 2014/15 in its UK Bus division, its UK Rail New West Coast Trains franchise agreement and an 80% rise in operating profit in North America, leading to a 10% increase in its full-year dividend.
Looking ahead Stagecoach said that while a number of challenges to growing profit in the full-year remain, overall trading is satisfactory and that it remains on course to meet its full-year expectations.
Stagecoach shares were trading 0.33% higher at 360.70 pence per share Tuesday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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