Stagecoach Group plc Interim Management Statement
Financial performance
The overall profitability of the Group has remained good, and there has been no significant change to our expected Group profit before tax for the year ending 30 April 2013.
Like-for-like revenue growth for the financial year to date in each of the Group's main businesses is provided below.
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UK Bus (regional operations) |
- twelve weeks ended 22 July 2012 |
4.1% |
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UK Bus (London) |
- twelve weeks ended 22 July 2012 |
(5.7)% |
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UK Rail |
- twelve weeks ended 22 July 2012 |
6.8% |
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North America |
- three months ended 31 July 2012 |
10.4% |
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(including Megabus.com, excluding disposed Wisconsin school bus business) |
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Virgin Rail Group |
- twelve weeks ended 22 July 2012 |
0.6% |
The 5.7% decline in revenue at UK Bus (London) is consistent with our previous expectation that some less profitable contracts would not be retained as we restructured the acquired business and improved its overall profitability. The decline reflects the revenue lost from contracts that ended during the year to 30 April 2012. For the year as a whole to 30 April 2013, UK Bus (London) is well placed to maintain revenue with contract losses being offset by some contract wins and inflationary price increases on existing contracts.
Financial position
The Group continues to maintain a strong financial position with investment grade credit ratings and appropriate headroom under its debt facilities. In July 2012, the Group completed the acquisition of businesses and assets from Coach America, Inc. The transaction was financed from available, committed bank facilities and further details are given in the announcement made by the Group on 23 July 2012.
Other events
In August 2012, the Department for Transport announced that the Group's joint venture, Virgin Rail Group, had not been awarded the new West Coast Trains rail franchise. Virgin Rail Group will cease to operate the West Coast Trains franchise in December 2012 when the new franchise commences. Further details are given in our announcement of 15 August 2012. Stagecoach Group is shortlisted for both of the other UK rail franchises it applied for and we are making good progress with our bid for the Great Western franchise. We will also consider other rail franchise opportunities as these arise.
Outlook
Overall current trading remains good and we believe the prospects for the Group remain positive
