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The order book represents the expected future revenue from public transport contracts already won by the group. It tracks estimated revenue over the life of contracted business, based on prices at each year end.
The principal areas of the group where contractual arrangements prevail are the bus operations in London, Italy, the Netherlands and Scandinavia, and the rail operations in the UK, Germany, the Netherlands and Scandinavia. The other parts of the group, principally UK Regions and Iberia, operate under concessions, licences or other commercial arrangements and are not included in the order book. The value of the order book is a key measure for demonstrating the underlying strength and stability of the business.
Group order book
Between 2006 and 2007, the group order book has grown 79 per cent, to £12.0 billion. These figures are estimates of future revenue from contracted business, over a year in duration, rolled forward to reflect contract variations and updated to current prices at each year end. Changes, year-on-year, principally represent future revenue from contract wins or acquired businesses in the year, less the revenue included in the year’s results from the contract base.
Mainland Europe order book split
2007
Growth in mainland Europe continues to be pleasing. The 18 per cent growth in the order book to £4.0 billion is consistent with our target of doubling revenue from 2006 levels in five years. Acquisitions, contract wins and contract extensions in the year substantially offset the erosion, over time, of the contracted revenue from contracts in operation.
Growth in the bus order book in the mainland Europe division rose 11 per cent to £2.1 billion, whilst growth in the rail order book was up 25 per cent to £1.9 billion.
UK Trains order book
2007
The order book increased to £7.3 billion, reflecting the anticipated lifetime revenue for CrossCountry of almost £5 billion in real terms.
UK Bus order book - London
2007
The UK Bus order book consists solely of London, as the regional business is not contracted. The London order book rose three per cent to £749 million, with growth reflecting four new contracts started in 2007, and three further new contracts due to start in 2008.
