1 / 37

Annual Results Year ended 30 April 2009 24 June 2009

Annual Results Year ended 30 April 2009 24 June 2009. Definitions.

fausta
Download Presentation

Annual Results Year ended 30 April 2009 24 June 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Annual ResultsYear ended 30 April 2009 24 June 2009

  2. Definitions • Like-for-like amounts are derived, on a constant currency basis, by comparing the relevant year-to-date amount with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods. • Operating profit for a particular business unit or division within the Group refers to profit before net finance income/charges, taxation, intangible asset expenses, exceptional items and restructuring costs. • Operating margin for a particular business unit or division within the Group means operating profit as a percentage of revenue. • Exceptional items means items which individually or, if of a similar type, in aggregate need to be disclosed by virtue of their nature, size or incidence in order to allow a proper understanding of the underlying financial performance of the Group. • Net debt is the net of cash and borrowings as reported on the consolidated balance sheet, adjusted to exclude any accrued interest and deferred gains on derivatives.

  3. Robert SpeirsChairman

  4. Highlights • Strong financial results • Revenue and operating profit growth • Adjusted EPS up 12.8% • Full-year dividend per share up 11.1% • Growing bus operations in UK and North America • Current trading in line with expectations

  5. Martin GriffithsFinance Director

  6. Financial summary Year to 30 April 09 Year to 30 April 08 Change Revenue Operating profit* Adjusted earnings per ordinary share* Basic earnings per ordinary share Net debt Dividend per ordinary share £2,103.3m £227.8m 22.9p 18.7p £(340.1)m 6.0p £1,763.6m £205.3m 20.3p 34.6p £(319.7)m 5.4p 19.3% 11.0% 12.8% (46.0)% 6.4% 11.1% * excluding exceptional items and intangible asset expenses

  7. Summary income statement Year to 30 April 09 £m Year to 30 April 08 £m Change £m UK Bus operating profit North America operating profit excluding megabus megabus North America operating loss UK Rail operating profit Share of joint ventures’ profit after tax Restructuring costs (non-exceptional) and group overheads Operating profit Finance charges (net) Tax Profit excluding intangibles and exceptionals Intangibles and exceptionals, net of tax Reported profit from continuing operations 125.6 28.0 (2.8) 55.7 35.3 (14.0) 227.8 (31.4) (33.0) 163.4 (29.9) 133.5 109.9 23.9 (2.9) 59.1 32.6 (17.3) 205.3 (30.9) (28.3) 146.1 83.1 229.2 15.7 4.1 0.1 (3.4) 2.7 3.3 22.5 (0.5) (4.7) 17.3 (113.0) (95.7)

  8. UK Bus Year to 30 April 09 Year to 30 April 08 Change 830.8 799.0 125.6 15.1% 646.1 317.2 743.9 733.4 109.9 14.8% 625.9 312.0 11.7% 8.9% 14.3% 0.3% 3.2% 1.7% Revenue (£m) Like-for-like revenue (£m) Operating profit (£m) Operating margin (%) Estimated like-for-like passenger journeys (m) Like-for-like vehicle miles operated (m) • Strong, consistent like-for-like revenue growth throughout 2008/9 • Revenue and journeys benefiting from marketing campaigns, investment in fleet, excellent value fares and concessionary fare schemes • Acquisitions of small, complementary businesses • First full year of new national concessionary fare scheme ended March 2009 • Flexible cost base – contingency plans in place for any revenue slowdown

  9. North America (excluding megabus) Year to 30 April 09 Year to 30 April 08 Change Revenue (US$m) Like-for-like revenue (US$m) Operating profit (US$m) Operating margin (%) 463.7 407.4 47.0 10.1% 474.3 399.3 48.0 10.1% (2.2)% 2.0% (2.1)% 0.0% • Overall solid performance • Further margin improvement • Expansion of megabus.com • New York sightseeing joint venture from 31 March 2009

  10. UK Rail (wholly-owned) Year to 30 April 09 Year to 30 April 08 Change Revenue (£m) Like-for-like revenue (£m) Operating profit (£m) Operating margin (%) Estimated passenger miles (m) - South Western - East Midlands 977.7 689.5 55.7 5.7% 3,298.4 1,206.9 777.8 649.3 59.1 7.6% 3,228.7 1,188.0 25.7% 6.2% (5.8)% (1.9)% 2.2% 1.6% • Reduced revenue growth rate • Revenue now below franchise target • c.£50m annualised cost savings implemented

  11. Impact of UK Rail, revenue changes South Western East Midlands Virgin Rail Group (49%) Total Illustrative passenger revenue per annum (£m) 1% change on revenue (£m) 1% change on revenue post 28% tax (£m) Impact on adjusted earnings per share (pence) 674.7 6.7 4.8 0.7 257.7 2.6 1.9 0.3 322.3 3.2 2.3 0.1* 1,254.7 12.5 9.0 1.1 The analysis shown above is for illustrative purposes only to show how a 1% change in revenue affects earnings per share, assuming no changes in costs and based on the number of shares (715.0m) ranking for dividend as at 30 April 2009. * Impact on earnings is net of 80% revenue support for Virgin Rail Group

  12. South Western Trains Contractual matters • In dispute with Department for Transport regarding aspects of the franchise agreement • Period covered by revenue support • Treatment of car park revenue (LENNON element) when calculating revenue support • Seeking resolution through arbitration • Appropriate legal advice taken and we consider our position to be strong

  13. Virgin Rail Group Year to 30 April 09 Year to 30 April 08 Change 322.3 322.3 302.9 - 42.7 13.2% 43.9 2,515.0 394.0 310.3 301.9 83.7 41.9 10.6% 30.5 2,553.0 (18.2)% 3.9% 0.3% (100.0)% 1.9% 2.6% 43.9% (1.5)% Revenue – 49% share (£m) • West Coast (£m) • West Coast like-for-like (£m) • CrossCountry (£m) Operating profit – 49% share (£m) Operating margin (%) Dividends received (£m) Estimated like-for-like passenger miles (m) – West Coast • Poor Network Rail operational performance • Significant compensation received • c.30% more services from January 2009 • Revenue support available from December 2008 • First support payment applied for in June 2009 • c.£10m annualised cost savings

  14. Miscellaneous income statement items Year to 30 April 09 Year to 30 April 08 Change Citylink joint venture (£m) Splash Tours joint venture (£m) Twin America joint venture (£m) Intangible asset expenses (£m) Group overheads (£m) Restructuring costs (non-exceptional) (£m) Post-tax exceptional items (£m) 1.0 (0.6) 0.9 (13.4) (11.5) (2.5) (18.7) 0.8 (0.4) Nil (13.0) (13.0) (4.3) 113.9 25.0% 50.0% - 3.1% (11.5)% (41.9)% (116.4)% • Twin America joint venture (New York Sightseeing) commenced 31 March 2009 • Exceptional items include £12.0m (2008: £Nil) of UK Rail restructuring costs

  15. Finance charges and credit ratios Year to 30 April 09 Year to 30 April 08 Change Net Group finance charges* (£m) EBITDA from continuing operations and joint ventures* (£m) Year-end net debt (£m) Net Debt/EBITDA* EBITDA*/Net finance charges (31.4) 299.9 (340.1) 1.1x 9.6x (30.9) 271.9 (319.7) 1.2x 8.8x 1.6% 10.3% 6.4% (0.1)x 0.8x * excluding exceptional items

  16. Liquidity • Excellent liquidity • £473.5m undrawn committed core bank facilities available for cash drawings at 30 April 2009 • Sufficient bank facilities to refinance US$ bond (US$293.1m) in November 2009 • Key refinancing required by 2012 • Other undrawn available credit lines – e.g. asset finance • Operating well within bank covenants • Cash generative • Upward pressure on debt pricing • Monitoring all financing alternatives, including debt capital markets

  17. Taxation Year to 30 April 2009 Pre-tax Profit £m Tax £m Rate % Excluding intangible asset expenses and exceptional items Intangible asset expenses Exceptional items Joint venture taxation for reporting purposes Reported in income statement Cash tax paid (net) 207.8 (13.4) (12.2) 182.2 (11.4) 170.8 (44.4) 2.2 (6.5) (48.7) 11.4 (37.3) (3.7) 21.4% 16.4% n/a 26.7% n/a 21.8%

  18. Movement in net debt Year to 30 April 2009 £m EBITDA from Group companies before exceptional items Loss on disposal and impairment of plant and equipment Equity-settled share based payment Dividends from joint ventures Movement in retirement benefit obligations Working capital movements Exceptional restructuring costs Net interest paid Tax paid Net cash from operating activities Net capital expenditure including new hire purchase and finance leases Acquisitions of businesses, intangibles and investments Token sales and redemptions/others Cash generation Foreign exchange Equity dividends Share capital movements Increase in net debt Opening net debt Closing net debt 264.6 2.2 3.1 44.9 (32.0) 43.7 (12.0) (33.0) (3.7) 277.8 (170.7) (26.2) (1.5) 79.4 (58.3) (41.8) 0.3 (20.4) (319.7) (340.1)

  19. Capital expenditure New hire purchase and finance leases £m Impact of capex on net debt £m Disposal proceeds** £m Net 2008/9 Actual £m Cash spent on capex* £m UK Bus North America UK Rail 71.5 17.1 Nil 88.6 113.2 33.4 36.9 183.5 (9.3) (3.4) (0.1) (12.8) 103.9 30.0 36.8 170.7 41.7 16.3 36.9 94.9 * Excludes capitalised intangible assets and assets acquired through business combinations ** Excludes proceeds from selling businesses

  20. Fuel Hedging UK Bus North America UK Rail 2008/9 - average effective price (per litre) 2009/10 - % of forecast consumption hedged - average hedge price (per litre) 2010/11 - % of forecast consumption hedged - average hedge price (per litre) 2011/12 - % of forecast consumption hedged - average hedge price (per litre) Market price (per litre) 32.0p 96% 46.1p 90% 35.9p 10% 37.2p 30.2p 63.1 cents 76% 82.2 cents 75% 50.5 cents 10% 54.2 cents 48.6 cents 33.4p 75% 31.3p 75% 31.3p - - 30.2p Market prices are as at 19 June 2009 Prices exclude premia payable on fuel caps, delivery margins, duty, taxes and Bus Services Operators Grant

  21. Fuel costsLatest forecasts Fuel costs Volumes 2007/08 Actual £m 2008/09 Actual £m 2009/10 Forecast £m 2010/11 Forecast £m 2011/12 Forecast £m 2009/10 Forecast Litres m UK Bus, excluding BSOG* UK Bus, BSOG* UK Bus, including BSOG* North America South Western Trains 2008/9 UK Bus Acquisitions+, excluding BSOG* 2008/9 UK Bus Acquisitions+, BSOG* East Midlands Trains Total (150.1) 68.5 (81.6) (25.1) (4.3) (111.0) - - (8.9) (119.9) (172.9) 74.7 (98.2) (32.8) (5.4) (136.4) (3.5) 1.2 (20.0) (158.7) (191.8) 75.5 (116.3) (42.6) (5.0) (163.9) (7.9) 3.1 (21.7) (190.4) (176.5) 75.5 (101.0) (31.2) (5.0) (137.2) (7.3) 3.1 (21.7) (163.1) (171.4) 75.5 (95.9) (30.8) (5.0) (131.7) (7.0) 3.1 (21.1) (156.7) 189.0 - 189.0 76.6 12.0 277.6 7.8 - 51.1 336.5 Market prices are as at 19 June 2009, when Brent Crude was US$70 per barrel Forecast costs for the unhedged element of fuel are based on 19 June 2009 spot prices Above costs include delivery margins, duty and taxes (duty forecast at current levels) but exclude 3rd party fuel costs * Bus Services Operators Grant (“BSOG”) represents a rebate of an element of fuel duty costs in respect of certain UK Bus services + Bullocks, Highland (Rapsons), Cavendish, Preston Bus, Eastbourne

  22. Brian SouterChief Executive

  23. UK Rail • Weakening demand, but strong balance sheet to manage business cycle • Strong operational performance • Delivery on franchise commitments to passengers and Government • Decisive management action to minimise risk and maximise opportunities • Cost reduction programme • Revenue generation: new timetables, new stations, gating, off-peak travel

  24. North America • Flexible business model • Weaker leisure demand • megabus.com ahead of expectations • Twin America joint venture

  25. UK Bus • Strong performance and flexible business model • Successful and growing provincial bus operations • Around 19% of UK bus market outside London • Not index-related (eg, regulated London bus operators) • Stagecoach differentiation in market • Above-industry growth rates • Successful discount ticketing strategy • Bolt-on acquisitions and continued investment • Successful partnerships

  26. Growing the market for bus travel • Passenger volumes up 27% since 2003/04 • Discount ticketing strategy: weekly travel £11 • £40m vehicle investment in past four years

  27. Growing online sales • Investment in UK and North America online sales sites • Buymymegarider.com, Buymyunirider.com • Megabus.com • Coachusa.com • Total online bus and rail sales increasing • Total bus internet sales in UK and North America up 62% compared to 2007/08 • SWT and EMT up 23% compared to 2007/08 • Total Group online sales now around £110m p.a.

  28. Current trading and outlook • UK Bus performing strongly • Flexibility to respond if revenue weakens • Challenging year at UK Rail • Weak demand and significant step up in premium payments • Manageable through action plans and strong Group balance sheet • Current trading in line with management expectations

  29. Fundamentals • Business prepared to weather economic environment • Stagecoach track record of organic growth and product development • High-quality operational performance and good cashflows • Public transport central to Government action on congestion and climate change

  30. Annual ResultsYear ended 30 April 2009 24 June 2009

  31. Appendices

  32. UK Bus Revenue Year to 30 April 2009 £m Year to 30 April 2008 £m Change % Like-for-like Acquisitions: Highland excluding Inverness depot (acquired May 2008) Inverness depot (integrated Highland and Bluebird business) Fens (acquired March 2008) Rennies (acquired March 2008) Preston Transport (acquired January 2009) Eastbourne (acquired December 2008) Cavendish (acquired January 2009) Disposals: Darlington (disposed August 2007) Huddersfield (disposed April 2008) Start-ups: Rail replacement (started May 2008) Total reported 799.0 9.3 8.6 4.5 2.4 2.3 1.7 0.2 - - 2.8 830.8 733.4 - 6.1 0.4 0.3 - - - 1.0 2.7 - 743.9 8.9% 11.7% Assets of Bullocks integrated with existing operations and now not distinguishable from like-for-like revenue

  33. North America revenue breakdown Year to 30 April 2009 US$m Year to 30 April 2008 US$m % Growth Scheduled service/line run/commuter/casino Charter Sightseeing & tour School bus & contract Like-for-like revenue (excluding Megabus) “Disposed” & closed operations and Canada fx Total North America (excluding Megabus) Megabus Total North America 199.2 95.8 20.8 91.6 407.4 56.3 463.7 35.8 499.5 200.1 92.2 19.8 87.2 399.3 75.0 474.3 11.3 485.6 (0.4)% 3.9% 5.1% 5.1% 2.0% (2.2)% 2.9%

  34. Divisional income statements Year ended 30 April 2009 UK Bus £m North America £m UK Rail £m Virgin Rail Group (100%) £m 830.8 Nil 14.0 (417.8) (100.5) (32.8) (50.4) Nil (11.1) Nil Nil Nil (35.8) (70.8) 125.6 297.7 Nil 3.6 (129.0) (32.8) (20.1) (19.5) Nil (5.0) Nil Nil Nil (19.7) (50.0) 25.2 977.7 (66.4) 68.4 (264.5) (31.9) (5.5) (2.1) (185.3) (7.2) (238.1) (41.1) (24.5) (36.7) (87.1) 55.7 657.7 15.3 105.9 (141.2) (9.2) (4.3) (0.4) (211.9) Nil (173.4) (28.0) (41.2) Nil (82.1) 87.2 Revenue Rail franchise support Other operating income Staff costs Fuel costs (i.e. diesel) Insurance and claims costs Depreciation Rolling stock costs – lease & maintenance Other operating leases Network Rail Electricity for trains Commissions payable Materials & consumables Other costs Operating profit

  35. Rail subsidy/(premium) profiles South Western £m East Midlands £m West Coast £m Year to 31 March: 2009 2010 2011 2012 2013 2014 2015 2016 2017 21.1 (42.0) (93.2) (149.7) (218.6) (286.8) (355.1) (429.0) (422.6) 121.7 98.5 62.2 19.6 (11.2) (30.2) (85.7) - - 288.1 279.5 225.5 191.1 - - - - - The above amounts are subject to adjustment for: (1) various inflation measures (2) risks borne by the Department for Transport (3) called options and (4) changes in Regulated Network Rail charges. The amounts shown above are based on estimated inflation and options called to date. The amounts shown above do not reflect charges arising from changes to Network Rail charges for Control Period 4, which began on 1 April 2009, because these charges are not yet finalised.

  36. Exchange rates April 2009 April 2008 Closing rate Average rate Closing rate Average rate US$ C$ 1.4818 1.7605 1.6780 1.8955 1.9806 1.9947 2.0072 2.0525

  37. Annual ResultsYear ended 30 April 2009 24 June 2009

More Related