Press releases
Arriva plc - pre-close trading statement
26 June 2008
Leading European transport services group Arriva has built on the positive start to the year announced at its AGM on 23 April 2008.
- Strong growth in all three divisions
- Group revenue will increase by more than 50 per cent for the half year
- Significant earnings growth anticipated for the half and full year
- Fuel fixed at around 28 pence per litre for 2008, and at 39 pence for 75 per cent of 2009’s anticipated requirement
Our UK bus division has continued to grow strongly. This is as a result of more passengers and network development in the regions, increased contract mileage in London, and the acquisition of airport based operations, Tellings Golden Miller and Excel. This growth has been reflected in a robust trading performance.
Trading at our UK Trains division, including the new CrossCountry franchise, has been pleasing. Arriva Trains Wales has continued to operate strongly with passenger revenue up by 10.7 per cent for the year to date. Passenger revenue for CrossCountry in the first 24 weeks was up 10.0 per cent on the equivalent services last year*. Good progress is being made with regard to planned capacity improvements, IT and marketing developments.
Significant growth in mainland Europe has continued. In January, we acquired a further 10 per cent interest in Barraqueiro SGPS SA, taking our stake in Portugal’s leading passenger transport operator to 31.5 per cent. In April, we announced that we had contracted to acquire an 80 per cent stake in Eurobus, taking us into Hungary and Slovakia. The deal is expected to complete shortly.
Our general policy is to maintain fuel price fixes at least 12 to 15 months ahead, on a rolling basis. For the current year, the average cost price per litre of fuel, before fuel taxation and delivery costs, will be around 28 pence, similar to 2007. We currently have fuel price fixes in place for 75 per cent (352 million litres) of our anticipated 2009 non-indexed consumption (470 million litres), and indexation coverage for a further 50 million litres. Fuel price fixes for 2009 so far are at an average price of 39 pence per litre. As reported previously, 75 per cent of the anticipated 100 million litre annual fuel requirement for CrossCountry remains fixed until 2016 at 26.5 pence per litre.
The outlook for 2008 remains positive. We will continue to benefit from a strong balance sheet, a strongly cash-generating business, and the resilience of our diversified portfolio of contracts with a high proportion of non-passenger revenues. We are confident of reporting considerable revenue and earnings growth at both the half year, and for the full year, in line with management expectations.
Interim results for the half year ending 30 June 2008 are due to
be announced on Friday 22 August 2008.
