23/06/2004

Business highlights

• Group



• strong year of growth and delivery of strategic objectives
• turnover from continuing operations up 4.9%
• operating margin improvement at continuing operations
• disposals of Citybus (Hong Kong) and non-core North American operations
• disposals of non-core investments in Road King and Trainline
• net debt down 88% by £492m from £560m to £68m
• proposed return of approximately £250m capital to shareholders through issue of redeemable “B” shares - equivalent to 18.0p per ordinary share



• UK Bus



• turnover up 8.7%
• operating margin* up to 11.5% from 11.2% (including impact from increases in operating lease, National Insurance and pension costs)
• passenger volumes up 1.4% outwith London



• North America (Coach USA)



• successful delivery of restructuring and disposal programme
• signs of recovery resulting in turnover from continuing operations up 5.1% in second half of year (constant currency)
• operating profit* up 5.7% on significantly reduced turnover base



• Rail



• turnover up 6.1%
• operating profit* up 15.4%
• significant improvement in South West Trains’ operational performance
• first UK rail integrated control centre opened by South West Trains and Network Rail
• partner in shortlisted bids for East Coast and Integrated Kent franchises
• partnership with Virgin and Deutsche Bahn to bid for inter-city rail franchises

* excluding restructuring costs, goodwill amortisation and exceptional items

Financial highlights

• Total turnover £1,792m (2003 - £2,077m)
• Total operating profit** £148m (2003 - £146m)
- £142m (2003 - £121m), excluding Citybus, Road King and Trainline disposals - statutory operating profit £130m (2003 – loss of £466m)
• Profit before tax** £120m (2003 - £113m)***
- statutory profit before tax £96m (2003 – loss of £500m)
• Earnings per share** 6.7p (2003 – 6.4p)
• Full year dividend up 11.5% at 2.9p (2003 – 2.6p)

Stagecoach Chief Executive Brian Souter said: “We have had a very successful year, delivering on our key strategic priorities. Our focus on new business development, innovation and targeted investment is driving growth, particularly in our UK bus operations. In Rail, we have significantly out-performed last year by controlling costs, improving operational performance and investing in new trains. Our restructuring in North America has resulted in a core business with significant potential for future growth.

“We are pleased that our forward-looking ideas to improve the bus and rail industries have been positively received. Stagecoach is at the leading edge of public transport provision and our shareholders can share our confidence in the future prospects of our business. While still early in the new financial year we have made a promising start and trading is in line with our expectations.”

ENDS

Enquiries to:

Martin Griffiths, Stagecoach Group – 01738 442111
Steven Stewart, Stagecoach Group – 07764 774680
John Kiely, Smithfield Financial – 020 7360 4900

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