interim results 2005 interim results 7 december 2005

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  • Slide 1
  • Interim Results 2005 Interim Results 7 December 2005
  • Slide 2
  • Interim Results 2005 1 Robert Speirs Chairman
  • Slide 3
  • Interim Results 2005 2 Highlights Strong set of results for 6 months ended 31 October 2005 Increased operating profits* at continuing UK Bus, despite ongoing cost pressures Growth in operating margins in North American bus Revenue growth at South West Trains, despite London terrorist attacks Interim dividend up 10% to 1.1p per share (2004: 1.0p) Disposal of New Zealand in November 2005 for NZ$250.5m * References to the operating profit (or operating margin) of a particular business throughout this presentation mean operating profit (or operating margin) before intangible asset amortisation, exceptional items and restructuring costs.
  • Slide 4
  • Interim Results 2005 3 Martin Griffiths Finance Director
  • Slide 5
  • Interim Results 2005 4 Financial Highlights Revenue + from continuing businesses up 7.8% -786.2m (2004: 729.1m) -Up 7.1% at constant exchange rates Operating profit pre intangibles and exceptionals 82.7m (2004: 80.7m) EBITDA (pre exceptionals and JVs) up 3.9% at 112.5m Adjusted EPS up 28.6% to 5.4p + excluding acquisition of Glenvale and disposed operations
  • Slide 6
  • Interim Results 2005 5 Revenue - continuing operations, excluding Glenvale Total operating profit* - pre intangibles & exceptionals Profit before tax - pre intangibles & exceptionals Net cash from operating activities Adjusted earnings per share Dividend per share October 2005 m October 2004 m 793.0 786.2 69.5 82.7 54.9 72.1 106.2 5.4p 1.1p 735.7 729.1 74.1 80.7 59.3 70.6 128.8 4.2p 1.0p Financial Summary * After restructuring costs of 0.7m (2004: 0.3m)
  • Slide 7
  • Interim Results 2005 6 EBITDA UK Bus- excluding Glenvale - Glenvale North America New Zealand Rail Group overheads & restructuring costs EBITDA from Group companies before exceptionals Virgin Rail Group Other joint ventures and associates Total EBITDA before exceptionals October 2005 m October 2004 m 62.2 (0.5) 23.5 6.0 27.0 (5.7) 112.5 4.5 Nil 117.0 61.5 Nil 21.7 5.9 23.8 (4.6) 108.3 4.1 (0.2) 112.2
  • Slide 8
  • Interim Results 2005 7 Net cash inflow from operating activities Net interest paid Taxation Net cash from operating activities Net capital expenditure including new hire purchase finance Acquisitions of businesses and other investments Sale of businesses and other investments Token sales and redemptions Foreign exchange Reduction in net debt before cashflows with shareholders Repurchase of B shares Equity dividends Other share capital movements Reduction in net debt Opening net debt Closing net debt October 2005 m 132.7 (12.5) (14.0) 106.2 (42.0) (13.9) 4.6 (3.6) (11.1) 40.2 (13.9) (24.6) 4.0 5.7 (214.6) (208.9) Movement in Net Debt
  • Slide 9
  • Interim Results 2005 8 UK Bus Trading Results Revenue growth 10.5% to 387.9m (2004: 351.1m) revenue growth 8.5%, excluding acquisition of Glenvale Strong contribution from London companies revenue growth 9.7% Underlying passenger growth of 1.5% outside London revenue growth 8.1%, excluding acquisition of Glenvale Operating margin 10.8% (2004: 11.5%), excluding acquisition of Glenvale
  • Slide 10
  • Interim Results 2005 9 UK Bus Revenue Development 2004 Revenue Glenvale Passenger volumes Tender wins/ contract amendments Fare increases megabus.com 2005 Revenue n/a 5.8% 3.5% 0.4% 9.7% London m% 249.9 6.8 3.7 3.0 12.0 1.5 276.9 2.7% 1.5% 1.2% 4.8% 0.6% 10.8% 351.1 6.8 3.7 8.9 15.5 1.9 387.9 1.9% 1.1% 2.5% 4.4% 0.5% 10.5% Outwith London m% UK Bus m% 101.2 Nil 5.9 3.5 0.4 111.0
  • Slide 11
  • Interim Results 2005 10 North America Trading Results Revenue 130.8m (2004: 123.6m) 11.0% increase in US$ revenue from continuing operations Operating margin up from 11.8% to 12.0% Operating profit 15.7m (2004: 14.6m) US$28.3m (2004: US$26.5m) excellent revenue growth strict cost control overhead reduction: consolidation of US regions
  • Slide 12
  • Interim Results 2005 11 Scheduled service/Line run/Commuter Charter Sightseeing & Tour School Bus & Contract Total October 2005 US$m October 2004 US$m 89.0 55.7 55.0 35.7 235.4 82.4 50.6 47.6 31.5 212.1 % Growth 8.0% 10.1% 15.5% 13.3% 11.0% North America Continuing Revenue Breakdown By Product
  • Slide 13
  • Interim Results 2005 12 New Zealand Trading Results Revenue 28.7m (2004: 26.2m) Underlying revenue similar to last year (excluding currency movements) Operating profit 3.5m (2004: 3.9m) -NZ$9.1m (2004: NZ$10.9m) Operating margin 12.2% (2004: 14.9%) Disposal completed at NZ$250.5m enterprise value
  • Slide 14
  • Interim Results 2005 13 Rail Trading Results Rail Subsidiaries Revenue 245.6m (2004: 234.8m), up 4.6% Operating profit 24.4m (2004: 22.5m) Passenger volumes up 0.8% at SWT, adversely affected by terrorist attacks Revenue and profit share to SRA 27.8m (2004: 20.5m)
  • Slide 15
  • Interim Results 2005 14 Virgin Rail Group Share of profit after tax 4.5m (2004: 4.1m) New long-term commercial arrangements on West Coast discussions with DfT ongoing CrossCountry current franchise terminates on 10 November 2007 Share of operating profit includes 29.8m for additional subsidy claims
  • Slide 16
  • Interim Results 2005 15 Taxation Pre intangibles and exceptionals* Exceptional items Intangible asset amortisation Result for the period* Cash tax paid (net) Pre-tax m Tax m 74.5 (4.0) (13.2) 57.3 (16.5) 1.7 1.1 (13.7) 14.0 % 22.1% 42.5% 8.3% 23.9% October 2005 * Adjusted for our share of VRGs tax, classified within operating profit under IFRS
  • Slide 17
  • Interim Results 2005 16 Balance Sheet & Financing Net debt + 208.9m (2004: 214.6m) EBITDA*/Interest cover 11.0 times Further debt reduction from New Zealand disposal Progressive dividend policy + UK GAAP definition * Before exceptional items
  • Slide 18
  • Interim Results 2005 17 Brian Souter Chief Executive
  • Slide 19
  • Interim Results 2005 18 Group Strategy Quality operations driving strong results Excellent operational performance Strong financial results Bus operator of the Year Train operator of the Year South West Trains punctuality now over 90% Improved punctuality at Virgin Rail Group UK Bus reliability 99.3% Adjusted EPS up 28.6% Revenue from continuing operations up 7.8% Absorbing increased fuel costs UK Bus margins bucking peer group trend Dividend up 10.0%
  • Slide 20
  • Interim Results 2005 19 Group Strategy UK Bus Kickstart wins Stagecoach schemes secured 8.1m of DfT funding for 2005/06 out of total awards budget of 19.9m Organic growth in Southern companies Business Development opportunities megabus.com/Citylink joint venture in Scotland megabus.com
  • Slide 21
  • Interim Results 2005 20 Group Strategy UK Bus Passenger Growth Passenger growth by operating company excluding London October 2005 v October 2004 Overall passenger growth 1.5% 3% + 0-3%