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Interim Results For the six months ended 30 June 2001 12 September 2001

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 Presentation

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Page 1: Interim Results For the six months ended 30 June 2001

Interim ResultsFor the six months ended 30 June 2001

12 September 2001

Page 2: Interim Results For the six months ended 30 June 2001

PHIL WHITE

Chief Executive

Page 3: Interim Results For the six months ended 30 June 2001

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

Page 4: Interim Results For the six months ended 30 June 2001

WILLIAM ROLLASON

Finance Director

Page 5: Interim Results For the six months ended 30 June 2001

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)

Page 6: Interim Results For the six months ended 30 June 2001

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%)

Page 7: Interim Results For the six months ended 30 June 2001

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

Page 8: Interim Results For the six months ended 30 June 2001

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

Page 9: Interim Results For the six months ended 30 June 2001

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

Page 10: Interim Results For the six months ended 30 June 2001

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

Page 11: Interim Results For the six months ended 30 June 2001

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

Page 12: Interim Results For the six months ended 30 June 2001

Cash Flow

Disposalreceipts£230.6m

Cashgenerated

from operations

£82.4m

Decreasein net debt£210.4m

Capitalexpenditure

£59.4m

Financing, taxdividends and

other£43.2m

Page 13: Interim Results For the six months ended 30 June 2001

PHIL WHITE

Chief Executive

Page 14: Interim Results For the six months ended 30 June 2001

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

Page 15: Interim Results For the six months ended 30 June 2001
Page 16: Interim Results For the six months ended 30 June 2001

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

Page 17: Interim Results For the six months ended 30 June 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

Page 18: Interim Results For the six months ended 30 June 2001

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

Page 19: Interim Results For the six months ended 30 June 2001

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

Page 20: Interim Results For the six months ended 30 June 2001
Page 21: Interim Results For the six months ended 30 June 2001

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

Page 22: Interim Results For the six months ended 30 June 2001
Page 23: Interim Results For the six months ended 30 June 2001

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

Page 24: Interim Results For the six months ended 30 June 2001
Page 25: Interim Results For the six months ended 30 June 2001

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

Page 26: Interim Results For the six months ended 30 June 2001
Page 27: Interim Results For the six months ended 30 June 2001
Page 28: Interim Results For the six months ended 30 June 2001

Immediate Priorities

• Improve train profitability and patronage in the UK

• Work with Government

• Expand bus division

• Expand USA and Australian operations

Page 29: Interim Results For the six months ended 30 June 2001

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

Page 30: Interim Results For the six months ended 30 June 2001

Interim ResultsFor the six months ended 30 June 2001

12 September 2001