National Express and Stagecoach are both major providers of transport services in the UK. Here we compare their accounts of financial performance in their UK Bus divisions.
National Express plc UK Bus division – overview of 2014 UK Bus delivered a strong performance with revenue growth driven by a combination of increased passenger volume and price inflation. Passenger growth has reflected our continued investment in fleet, service and technology. Total revenue grew by 3% to £281.0 million (2013: £273.4m) with like-for-like commercial revenue growth of 3%. In the West Midlands commercial passenger journeys rose by nearly 1% in the year, whilst concession and other income increased by 3%.

Normalised operating profit was strong, with growth of 9% to £34.0 million (2013: £31.2m), reflecting both revenue growth and cost efficiencies. The operating margin has now risen to 12.1% (2013:
11.4%), and we believe this level of margin is sustainable supported by our strong partnership relationships.

Stagecoach Group UK Bus division – financial performance The financial performance of the UK Bus (regional operations) division for the year ended 30 April 2014 is summarised below:
Operating margin 14.6% 14.8% (20)bp

Our bus businesses are built on a successful commercial formula of low fares, investment and high customer service which has delivered continued passenger volume growth nearly every year for more than ten years. The Division’s results reflect a continuation of our successful strategy to grow revenue and passenger volumes organically, as well as pursuing targeted small bolt-on acquisitions. The previous year’s financial results to 30 April 2013 included revenue of £18.8m and operating profit of around £4m arising from the successful delivery of contracts to provide transport for the media and athletes at the London 2012 Olympic and Paralympic Games. Excluding that £4m operating profit, the division has increased operating profit by £8.2m or 5.9% in the year ended 30 April 2014.
Discussion points 1 How does each company describe the trading performance of its UK Bus division?
2 What further information would you require to allow you to compare these two accounts of financial performance?

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Like-for-like commercial revenue Mileage Underlying commercial revenue Concession and other revenue Total revenue Growth % 3 3 3 3