25th Feb 2008 07:00
Stagecoach Group PLC25 February 2008 Stagecoach Group plc 25th February 2008 Interim Management Statement Stagecoach Group plc ("the Group") is today publishing an interim managementstatement, covering the period since 31 October 2007. Financial performance The Group announced its interim results for the six months ended 31 October 2007on Wednesday 5 December 2007. Trading in the period since 31 October 2007 hasremained strong and the Group's overall financial performance has been at thetop end of management's expectations. Like-for-like revenue growth* in the main divisions was: UK Bus - forty weeks ended 3 February 2008 7.4% UK Rail - forty weeks ended 3 February 2008 14.0% North America - nine months ended 31 January 2008 4.2% Virgin Rail Group - forty weeks ended 3 February 2008 12.4% The reported like-for-like revenue growth for UK Rail does not include EastMidlands Trains, which commenced operating under the Group's ownership on 11November 2007. For the period from 11 November 2007 to 3 February 2008, therevenue of East Midlands Trains when compared to the equivalent businesses undertheir former ownership was 8.1% higher than the previous year. As we anticipated, the recent revenue growth rates in the UK Bus and UK RailDivisions have been below the rates experienced earlier in the financial year.This reflects the effect on UK Bus revenue of the timing of the introduction ofnew concessionary fare schemes and the effect on UK Rail revenue of the timingof the implementation of revenue-enhancing initiatives at Stagecoach SouthWestern meaning that in each case the prior year comparatives for more recentperiods included benefit from these items. At UK Bus, growth in full farepassenger volumes was approximately 2.5% for the forty weeks, in line with thegrowth rate reported for the six months to 31 October 2007. Financial position Since 31 October 2007, the Group's financial position has benefited from thecontinued strong trading noted above. It has also benefited from net exceptionalgains relating to: •the resolution of a number of historic tax matters with the taxauthorities and;•the resolution and/or updated assessment of certain liabilities held inrespect of past business disposals and litigation risks. The progression of these matters has resulted in approximately £70m of cashreceipts, and exceptional post-tax income statement gains of approximately£105m. Other material events and transactions since 31 October 2007 On 30 November 2007, the Group redeemed 11,409,623 B Shares at 63 pence each,leaving 12,783,677 B Shares in issue. Outlook We are encouraged with the current trading performance of the Group and, whilstwe remain mindful of macroeconomic developments and of continuing cost pressuressuch as increased fuel prices, the outlook remains positive. * Like-for-like revenue growth is derived, on a constant currency basis, bycomparing year-to-date revenue with the equivalent prior year period for thosebusinesses and individual operating units that have been part of the Group throughout both periods. In the case of Virgin Rail Group, the like-for-likerevenue growth relates to West Coast Trains only and in order to obtain a like-for-like comparison, it excludes the services that were transferred from CrossCountry Trains to West Coast Trains. For further information, please contact: Stagecoach Group plc www.stagecoachgroup.com Martin Griffiths, Finance Director 01738 442111Steven Stewart, Director of Corporate Communications 01738 442111 SmithfieldJohn Kiely 020 7360 4900 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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