1995 — Page 85

FINANCIAL REVIEW

HKSM

4.500

4,000

3.500

3,000

2,500

2,000

1,500

1,000

HKS M

2,200

2,000

1,800

600

400

Turnover

1991

1992

1993

1994

Profit attribuesile to shareholders, dividends and special cash bonuses

200

1711

0

1991

1992

1993

1994

Dividends

Bus operating profit

Exceptional item

1995

1995

Special cash bonuses

Earnings per share, dividends and special cash bonuses per share

C

550-

500

F

450

150

100

50

1.600

hhh

0

1991

1992

1993

1994

Earnings per share

Earnings per share attributable

to exceptional item

Shareholders' fund

1995

Dividends per share

Special cash bonuses per share

1,400

1,200

1,000

Full

1991

1992

1993

1994

1995

ANALYSIS OF RESULTS AND FINANCIAL POSITION

Revenue and Operating Costs

In the year under review, revenue and operating costs

increased by 13.5 per cent and 14.1 per cent respectively as

compared with the previous year. The increase in revenue was

mainly due to the fare increase of 7 per cent which came into

effect on 2 April 1995 and to an increase in the number of

passengers carried. The increase in operating costs was mainly

due to the increase in salaries and wages and additional

provision for claims on third party insurance.

The Company had 11,778 employees at the end of the year. A

pay increase of 10.02 per cent was granted to all daily-rated

employees with effect from 1 June 1995, and of 10 per cent to

all monthly-rated employees with effect from 1 September

1995. During the year, the benefits of the Company's daily-

rated employee retirement fund scheme were upgraded.

The High Court award in October 1995 in the personal injury

case Chan Pui ki vs Leung On and KMB set a new benchmark

on the magnitude of the awards made in Hong Kong. While its

implications are still uncertain as the case is due to be heard in

the Court of Appeal in June 1996, the Company will keep a

close watch on the situation and seek actuarial advice on the

level of its insurance claim reserve.

Passengers and Kilometres Travelled

In 1995, a total of 996 million passengers (1994 - 977 million)

rode on the Company's buses, giving a daily average of 2.73

million passengers (1994 - 2.68 million). This represented an

increase of 1.9 per cent in the number of passengers as

compared with the previous year. The actual distance travelled

16

KMB

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