27th Apr 2006 07:00
Stagecoach Group PLC27 April 2006 Stagecoach Group plc27 April 2006 Trading update Stagecoach Group plc ("Stagecoach" or "The Group") is pleased to provide anupdate on trading. Stagecoach will shortly be meeting with analysts in advanceof its year-end close period. The Group has continued to trade well during the second half of its financialyear, and it anticipates that its results for the year ending 30 April 2006 willbe in line with its expectations. The Group's Rail division continues to perform strongly, combining continuedgood profitability with excellent operational performance and improved customersatisfaction. The current South West Trains and Island Line franchises run untilFebruary 2007. Stagecoach is one of four remaining bidders for the new SouthWestern franchise, which will combine the operations of South West Trains andIsland Line from February 2007. Building on the Group's record of achievement,it will submit a powerful and value-for money bid that it believes will put theGroup in a strong position to win the new expanded franchise. Both of Virgin Rail Group's rail franchises have delivered improved punctualityand customer satisfaction over the last year. The Group has been encouraged bythe commitment shown by both Virgin Rail Group's management and the Departmentfor Transport ("DfT") to agreeing revised commercial terms for the West CoastTrains franchise and looks forward to these terms being finalised over the nextfew months. Trading at the Group's bus and coach operations in the UK and North Americaremains in line with management's expectations. The Group has been able tolargely offset the significant cost pressures (particularly fuel and pensioncosts) being experienced by all bus operators, through its focus on continuedrevenue growth and close management of controllable costs. The Group anticipatesthat these costs pressures will continue into the year to 30 April 2007 and itwill remain proactive in seeking to offset the impact of these costs. During the year, the Group has expanded its UK Bus operations through theacquisitions of Glenvale Transport Limited and Traction Group Limited. Followingthe recent decision by the Office of Fair Trading not to refer the TractionGroup acquisition to the Competition Commission, the integration of the acquiredoperations is progressing and management is encouraged by the opportunities forprofit growth in these businesses. Stagecoach expects to announce its preliminary results for the year ending 30April 2006 on Wednesday 28 June 2008. CONTACTS: TelephoneStagecoach Group plc Martin Griffiths, Finance Director 01738 442 111Steven Stewart, Head of Media & Public Affairs 01738 442 111 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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