BIRMINGHAM-based coach operator National Express has seen revenue rise in Q3, it reports today.
In an interim management statement for the quarter ended September 30, 2010, the company says it has “achieved overall revenue growth despite a continuing backdrop of challenging economic conditions”.
However, it added that net debt in the third quarter had increased in line with seasonal norms.
“We have completed the majority of our £125m second half year capital expenditure programme, adding new fleet in the North America and Spain businesses,” the firm said.
“Following completion of the group’s refinancing programme in July, we now have an average debt maturity of six years and no refinancing is planned before 2014.”
Third quarter operating profit was up by £5m year-on-year in its UK bus division, reflecting what the company called “significantly stronger yield management and operational efficiency gains”.
Underlying revenue was up by 2% year-on-year in the third quarter, with passenger revenue per mile 5% higher year-to-date.
National Express said its marketing had increased awareness and reach locally while investment in fleet included 20 hybrid vehicles.
“With one depot closed and restructuring of driver wages underway, our recovery programme targeting industry average margins is set for further delivery,” the statement added.
In its UK coach division, underlying revenue increased by 4% year-to-date.
It said it had “continued to enjoy good growth in airport and event business, once again partnering the Glastonbury Festival and providing coach transport for pilgrims to the recent papal visit to Birmingham”.
Among its rail business, National Express East Anglia has secured an extension to its franchise to October 2011, as part of the Government’s rail franchise review. Underlying revenue was 7% higher in the third quarter in this division.
