28th Apr 2008 07:00
Stagecoach Group PLC28 April 2008 Stagecoach Group plc28 April 2008 Trading update Stagecoach Group plc ("the Group") is today publishing an update on trading, inadvance of meetings with analysts. Financial performance The Group published an Interim Management Statement on 25 February 2008 andtrading since then has been strong and above expectations. The Group now expects that earnings per share for the year ending 30 April 2008(excluding intangible asset expenses and exceptional items) will be around 20pence. The UK Rail division and the Group's joint venture, Virgin Rail Group,are the principal contributors to this out-performance. In the UK Rail division, revenue growth has continued to be strong and costscontinue to be closely controlled. The Group has been encouraged by trading atEast Midlands Trains, which it began operating on 11 November 2007. Virgin Rail Group has also continued to see strong revenue growth and inaddition has settled a number of contractual matters with Network Rail, all ofwhich contributed to an increase in its expected profit for the year ending 30April 2008. Year-to-date revenue growth Like-for-like revenue growth* in each of the Group's main businesses is providedbelow. For UK Bus, UK Rail and Virgin Rail Group, the revenue for theforty-eight weeks to 30 March 2008 includes the Easter period, which is notcomparable to the previous year. The revenue growth for the forty-four weeks to2 March 2008 therefore provides a more appropriate indicator of revenue trendsand is also provided below. UK Bus - forty-eight weeks ended 30 March 2008 6.9% - forty-four weeks ended 2 March 2008 7.5% UK Rail - forty-eight weeks ended 30 March 2008 13.1% - forty-four weeks ended 2 March 2008 13.7% North America - eleven months ended 31 March 2008 4.3% Virgin Rail Group - forty-eight weeks ended 30 March 2008 11.2% - forty-four weeks ended 2 March 2008 12.7% The reported like-for-like revenue growth for UK Rail does not include EastMidlands Trains. For the period from 11 November 2007 to 30 March 2008, therevenue of East Midlands Trains when compared to the equivalent businesses undertheir former ownership was 9.9% higher than the previous year. Financial position As a result of the continued strong trading noted above and the exceptionalgains referred to in the Interim Management Statement of 25 February 2008, netdebt has significantly reduced from 31 October 2007 until now. The Group expectsnet debt to remain relatively constant from now until 30 April 2009. Thisincludes the impact of high planned capital expenditure during the year ending30 April 2009. The high planned capital expenditure includes anticipatedspending on railway assets that the Group expects it will ultimately sell toNetwork Rail and hence some of the expenditure will be recovered from NetworkRail in later periods. Outlook We are encouraged by the current trading performance of the Group and, whilst weare mindful of macroeconomic developments and of continuing cost pressures suchas increased fuel prices, the outlook remains positive. Preliminary results The Group intends to publish its preliminary results for the year to 30 April2008 on 25 June 2008. * 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 Groupthroughout 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 alike-for-like comparison, it excludes the services that were transferred fromCrossCountry 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 07764 774680 SmithfieldJohn Kiely / Will Swan 020 7360 4900 Notes to the editors Stagecoach GroupStagecoach Group is a leading international public transport group, withextensive bus and rail operations in the UK and North America. Cautionary StatementThis announcement contains certain forward-looking statements with respect tothe financial performance, financial position and businesses of Stagecoach Groupplc. These statements and forecasts involve risk, uncertainty and assumptionsbecause they relate to events and depend upon circumstances that will occur inthe future. There are a number of factors that could cause actual results ordevelopments to differ materially from those expressed or implied by theseforward-looking statements. These forward-looking statements are made only as atthe date of this announcement. Except as required by law, Stagecoach Group plchas no obligation to update the forward-looking statements or to correct anyinaccuracies therein. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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