Preliminary results for the year ended 31 December 2009
3 March 2010
- Strong run of contract wins and renewals: growing emphasis on rail in mainland Europe
- Mainland Europe order book up 29 per cent in euro
- UK Trains passenger revenue growth continuing to strengthen
- Tight management control mitigates £60 million fuel hit and effects of recession
- – Commercial mileage reduced by 3.4 per cent in UK regional bus operations
- – More than £15 million annualised cost savings achieved in UK Trains
- – Targeted savings and mileage reductions in mainland Europe
- – Pension and tax savings realised in 2009, and locked in for future years
- Profit before taxation down 19 per cent to £121.7 million
- Basic earnings per share up four per cent to 54.5 pence (2008: 52.6 pence)
- Adjusted earnings per share 58.8 pence (2008: 61.5 pence)
- Final dividend up five per cent to 18.80 pence per share
David Martin, chief executive, commented: “Arriva has come through a challenging year with resilient earnings. We have entered 2010 with improved efficiency which is contributing to current trading in all three divisions.
“Throughout the year we worked on business improvement measures to counteract the effects of a deep recession throughout Europe, and the legacy of unusually high fuel costs. Decisive management action has bolstered our already strong underlying performance, and will continue to deliver benefits in 2010 and beyond. Cost reductions have not been at the expense of operational performance, with reliability, punctuality and customer satisfaction at high levels throughout the group. Our tight focus on cost control and a disciplined approach to investment opportunities will continue.
“We have continued to build our long-term business in mainland Europe with a series of contract wins for work starting between 2010 and 2012, and the pipeline of attractive tender opportunities remains open. The exciting growth in our mainland Europe order book reflects continuing strong demand for the benefits the private sector can bring to transport in an era of tightening public spending, and a favourable competitive landscape.
“Trading is healthy in most mainland European countries, our UK bus business is showing continuing strength, and the acceleration of passenger revenue growth in our UK rail franchises is encouraging. Passenger revenue in CrossCountry is up by 8.8 per cent in the first seven weeks of 2010, helping to offset the lower franchise support payments it will receive in 2010. With a £30 million reduction in fuel costs in 2010, new contracts already secured, and passenger revenue support available to CrossCountry late next year, I am confident that the group has excellent prospects for substantial progress. That confidence is reflected in the Board’s recommendation of a further five per cent increase in the final dividend."
David Martin, Chief Executive
0191 520 4000
Steve Lonsdale, Group Finance Director
Simon Craven, Director – Communications
020 7353 4200
Notes to Editors:
- Arriva is one of the largest private sector providers of passenger transport in Europe, employing more than 42,300 people (including share of associate companies) and providing more than one billion passenger journeys every year.
- Arriva provides transport services including buses, trains, commuter coaches and water buses, and operates in 12 European countries: Czech Republic, Denmark, Germany, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden and the UK.
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