19th Apr 2005 07:00
Stagecoach Group PLC19 April 2005 Stagecoach Group plc 19 April 2005 Trading update Stagecoach Group plc ("the Company") is pleased to provide an update on trading.The Company will shortly be meeting with analysts in advance of its year-endclose period. The Company expects to announce its preliminary results for the year ending 30April 2005 on Wednesday 22 June 2005. The Group's profit before tax and exceptional items for the year ending 30 April2005 is now expected to exceed our previous expectations, primarily due to acontinued strong performance in the Rail division. Despite pressure on fuel costs, operating profits in the UK and North Americanbus divisions are in line with our expectations as we continue to benefit fromrevenue growth driven by our strong operational focus, continued innovation andtargeted marketing. In our New Zealand bus operations trading remainssatisfactory but we continue to experience increased competition from railwaysin Auckland. The Rail division continues to perform strongly with both revenues and costsbetter than we expected. The operating profit from our Rail subsidiaries isexpected to be no less than the prior year reported profit of £44.1m. Followingthe introduction of a new timetable at South West Trains on 12 December 2004,passengers have benefited from more frequent departures from the busieststations and a further significant improvement in train punctuality. We areconfident that this new improved timetable and its inherent reliability willstimulate further passenger growth. The two Virgin Rail Group ("VRG") franchises continue to operate on the basis ofannual budgets set by the Strategic Rail Authority ("SRA"). The Group's share ofoperating profit from VRG for the six months ended 31 October 2004 was £5.1m anda similar level of profit is expected for the second half of the Group'sfinancial year ending 30 April 2005. Profits in subsequent years will bedependent on VRG's performance against the 2005/6 budget set by the SRA and there-negotiation of the West Coast franchise planned for late 2005. CONTACTS: Telephone Stagecoach Group plcMartin Griffiths, Finance Director 01738 442 111Steven Stewart, Head of Media & Public Affairs 07764 774 680 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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