Stagecoach (SGC) is conscious of the time it will take for passengers to feel comfortable boarding its buses once more. The transport operator’s commercial revenues are currently at around 40 per cent of last year’s levels, which is up from the 15 per cent recorded at the end of its financial year. Stagecoach has restored around 80 per cent of its regional bus mileage since restrictions were relaxed. But chief executive Martin Griffiths acknowledged the impact of factors including increased homeworking and online shopping on passenger travel. “We anticipate that it will be some time before demand for our public transport services returns to pre-Covid levels,” he said.
The virus blew a hole in the operator’s profits. Stagecoach recorded a £16.5m impairment in response to the pandemic and expensed a further £12.9m in relation to discontinued fuel hedges, having slashed its vehicle mileage during the crisis.
The pandemic wasn’t the main culprit in Stagecoach’s revenue slump, however. The end of two rail franchises helped to bring about a £428m collapse in UK rail turnover, compared with Stagecoach’s £461m drop in group revenue. Stagecoach will not bid for UK rail franchises after having been disqualified from bidding for three contracts by the government last year in a pensions dispute.
Factset consensus estimates give EPS of 0.61p in 2021, rising to 8.09p in 2022.
| STAGECOACH (SGC) | ||||
| ORD PRICE: | 56p | MARKET VALUE: | £ 305m | |
| TOUCH: | 55-56p | 12-MONTH HIGH: | 167p | LOW: 49p |
| DIVIDEND YIELD: | 6.8% | PE RATIO: | 9 | |
| NET ASSET VALUE: | * | NET DEBT: | £352m | |
| Year to 2 May | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016** | 3.87 | 104 | 17.1 | 11.4 |
| 2017** | 3.94 | 18 | 5.5 | 11.9 |
| 2018** | 2.82 | 78 | 9.6 | 7.7 |
| 2019** | 1.88 | 101 | 22.1 | 7.7 |
| 2020 | 1.42 | 41 | 13.5 | 3.8 |
| % change | -24 | -60 | -39 | -51 |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £61.4m, or 11p a share **Refers to 52 weeks to 27 Apr | ||||
