interim results for the six months ended 30 june 2001
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Interim Results For the six months ended 30 June 2001. 12 September 2001. PHIL WHITE. Chief Executive. Highlights. Turnover up 29.2% to £1.2bn Operating profit up 20.9% to £76.8m Normalised diluted EPS up 21.2% to 33.7p Integration of Prism and SS&L - PowerPoint PPT PresentationTRANSCRIPT
Interim ResultsFor the six months ended 30 June 2001
12 September 2001
PHIL WHITE
Chief Executive
Highlights
• Turnover up 29.2% to £1.2bn • Operating profit up 20.9% to £76.8m• Normalised diluted EPS up 21.2% to 33.7p• Integration of Prism and SS&L• Continued investment in buses, trains and technology• Train passenger revenue back to pre-Hatfield levels• Strengthened divisional management• Sale of airports division for £241m
WILLIAM ROLLASON
Finance Director
Financial Highlights
• Turnover up 29.2% to £1,177.1m (2000: £911.3m)
• Normalised operating profit up 20.9% to £76.8m (2000: £63.5m)
• Normalised profit before tax up 20% to £60.5m (2000: £50.4m)
• Normalised diluted EPS up 21.2% to 33.7p (2000: 27.8p)
• Interim dividend up 12.3% to 7.3p (2000: 6.5p)
Financial Highlights
• Cash interest cover 6.4 times (2000: 5.2 times) on continuing activities
• Effective tax rate 21.5% (2000: 24.2%)
• Operating cashflow of £82.4m (2000: £44.4m)
• Net debt at 30 June £370.4m (2000: £415.3m)
• Net assets of £456.3m (2000: £278.1m)
• Gearing at 30 June 81% (2000: 149%)
Profit and Loss AccountUnaudited
6 months to
30 June
2001
Unaudited
6 months to
30 June
2000
Audited
Year to
31 Dec
2000
£m £m £m
Turnover 1,177.1 911.3 2,002.6
Normalised operating profit 77.9 67.5 155.1
Share of loss of associates (1.1) (1.8) (1.8)
Normalised profit before interest 76.8 65.7 153.3
Interest (16.3) (15.3) (34.0)
Normalised profit before taxation 60.5 50.4 119.3
Exceptional items (2.6) (20.9) (30.6)
Disposal of businesses 95.2 (0.4) (1.0)
Goodwill (20.0) (7.3) (22.7)
Profit before taxation 133.1 21.8 65.0
Normalised diluted EPS* 33.7p 27.8p 63.7p
Normalised effective tax rate 21.5% 24.2% 21.5%
* restated
Divisional Turnover
Buses
Unaudited6 months to
30 June2001
£m
103.1
Unaudited6 months to
30 June2000
£m
99.1
Trains
Coaches
UK operations
672.6
85.4
861.1
466.1
80.8
646.0
413.0259.6
- Turnover- Grants
244.9221.2
USA
Australia
202.5
106.7
1,170.3
1,177.1
6.8
221.5
Continuing operations
Airports - discontinued
135.2
115.1
896.3
15.0
911.3
- Turnover- Grants
77.329.4
75.839.3
576.0482.6
151.969.6
Audited year to31 Dec
2000£m
200.1
1,058.6
186.8
1,445.5
301.6
34.0
2,002.6
1,968.6
Total turnover
Divisional Operating Profit before goodwill and exceptionals
Buses
Trains
Coaches
USA
Unaudited6 months to
30 June2001
£m
Unaudited6 months to
30 June2000
£m
Audited year to31 Dec
2000£m
UK operations
Australia
26.5
20.3
1.9
22.0
6.1
76.8
77.9
1.1
25.2
14.0
1.6
16.6
6.1
63.5
4.0
67.5
50.6
34.1
11.3
32.7
13.3
13.1
155.1
48.7 40.8 96.0
Continuing operations
Airports - discontinued
142.0
Total operating profit
Balance SheetUnauditedAt 30 June
2001£m
UnauditedAt 30 June
2000£m
AuditedAt 31 Dec
2000£m
At 30 June
Goodwill 278.8 523.7526.1
Fixed assets 549.6 653.6513.0
Investments 21.7 27.327.3
Working capital (132.8) (251.1)(216.9)
Net borrowings (415.3) (556.6)(370.4)
Provisions for liabilities and charges (23.9) (19.6)(22.8)
Net assets 278.1 377.3456.3
Gearing 149% 148%81%
1,066.4 850.1 1,204.6
Divisional Cash Flow
Operating profit before exceptionals
DepreciationWorking capital movementExceptionals
Net capital investment
Net cash flow from operations
Net cash after investment
Net investments/disinvestments
EBITDA
Buses£m
26.5
5.60.6
-
(10.4)
22.3
32.7
4.8
32.1
Total UK£m
48.7
14.4 (11.4) (2.2)
(23.4)
26.1
49.5
9.0
63.1
USA£m
22.0
10.0 (6.3)
-
(17.4)
8.3
25.7
7.4
32.0
Australia£m
6.1
4.52.0
(0.4)
(15.1)
(2.9)
12.2
10.6
10.6
Trains£m
20.3
(6.4)
4.6
11.0
6.8 (13.9) (2.2)
(0.4)
27.1
Coaches£m
1.9
2.01.9
-
(6.6)
(0.8)
5.8
4.6
3.9
2.5
Airports£m
1.1
1.0 (7.1)
-
(3.5)
(8.5)
(5.0)
2.1
Total£m
77.9
29.9(22.8)
(2.6)
(59.4)
23.0
82.4
107.8
29.5
Cash Flow
Disposalreceipts£230.6m
Cashgenerated
from operations
£82.4m
Decreasein net debt£210.4m
Capitalexpenditure
£59.4m
Financing, taxdividends and
other£43.2m
PHIL WHITE
Chief Executive
Trains• Operating profit up 45% to £20.3m (2000: £14.0m)
• Train passenger revenue back to pre-Hatfield levels
• Hatfield effects mitigated by Railtrack compensation
• Marketing initiatives to return patronage growth
• Strengthened organisational lines
• Investment in rolling stock continues with 33 new trains delivered
• New ticketing technologies – on-line booking and retail system and portable ticketing units
Total Trains Growth in NX passenger revenue 2000/2001
-20
-15
-10
-5
0
5
10
15
20
31/3
/00
29/4
/00
27/5
/00
24/6
/00
22/7
/00
19/8
/00
16/9
/00
14/1
0/00
11/1
1/00
9/12
/00
6/1/
01
3/2/
01
3/3/
01
31/3
/01
25/4
/01
26/5
/01
23/6
/01
21/7
/01
18/8
/01
%
March 2000 to August 2001
TrainsRevenue performance growth on prior year
Cumulative Growth to 18 August 2001ATOC NX % %
Long distance/intercity -10.57 0.76
London & South East 1.42 -0.66
Regional -1.59 -0.66
Total -3.28 -0.45
Source: 2001 figures are sourced from ATOC
Train Refranchising• New guidelines issued by DTLR to focus on short term extensions
• MML two year extension highlighted by DTLR in its guidelines
• We will focus on extensions and re-profiling existing franchises
• Two year extension proposed for Silverlink submitted
• Proposal to re-profile ScotRail submitted with Central Trains to follow
• Announcement awaited on Wales & Borders and Wessex
• Longer term franchises with infrastructure upgrades appear to be on hold
Buses
• Operating profit up 5.2% to £26.5m (2000: £25.2m)
• Patronage remained stable due to Birmingham city centre redevelopment
• Focus on customer service and efficiency improvements
• Five year pay deal agreed to reduce staff turnover and aid recruitment
• 180 new low floor new buses being introduced during 2001
• Showcase routes
Coaches
• Operating profit up 19% to £1.9m (2000: £1.6m)
• Passenger journeys up 5.5% on first half last year
• New customer contact centre in Birmingham
• New coach station at Manchester
• Fuel Duty Rebate will enable half price fares for senior citizens
USA
• Operating profit up 32.5% to £22.0m (2000: £16.6m)
• Increased fuel and labour costs
• Increased efficiency
• Rebranding of Student Transportation
• Geographic focus
• Growth opportunities
Australia
• Operating profit of £6.1m (2000: £6.1m)
• Re-branding across Melbourne and Sydney
• Punctuality and efficiency focus
• Fare evasion and ticketing system in Melbourne hitting revenue
• Improved contribution from bus division
• Growth opportunities
Immediate Priorities
• Improve train profitability and patronage in the UK
• Work with Government
• Expand bus division
• Expand USA and Australian operations
Current Trading
• UK– Margin improvement at TWM and coaches– Marketing initiative to stimulate patronage on trains– Proposals to extend and re-profile train franchises
• Overseas– New school year starts well in USA– Continuing margin improvement in Australia
Interim ResultsFor the six months ended 30 June 2001
12 September 2001