GROUP revenues have climbed by 5% at Birmingham-based bus and rail operator National Express, the firm reports today.
In an interim management statement for the first quarter of 2011, the firm said revenues had grown across all five of its divisions while normalised pre-tax profit was up 30%.
Operating profit has also risen in all divisions with a £30m net capital expenditure aimed at supporting growth in Spain and North America.
It said that the group was on course to improve financial performance in 2011 “significantly”.
In its UK bus division, commercial revenue in the West Midlands rose by 7%, with concessionary revenue slightly lower year-on-year, and overall revenue for the division 4% higher.
Passenger volumes had declined slightly, it said, which reflected lower mileage operated.
This was more than offset by rebalancing of the fare basket, the statement said.
The company is currently investing around £20m per year in its fleet as part of a five-year replacement programme, with 120 new buses to be added this year.
Chief executive Dean Finch said: “National Express has delivered a strong first quarter, with improving revenue growth and a significant increase in profitability that builds on the foundations for success we laid in 2010.
“Our continued cost control initiatives and increased investment programme are both bearing fruit and demonstrate that our strategy is sound and will deliver significant shareholder value over the long term.”
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