National Express raises £235m through share issue

National Express has raised around £235m after it announced a share placing.

The transport giant sold over 100 million new shares in the company – just less than 20% of its existing issued share capital – as it looks to raise cash to see it through the coronavirus lockdown.

The move comes as National Express says it has secured a pre-emptive gearing covenant waiver on its USPP and banking facilities through 2020 and that it is looking to reintroduce a dividend for shareholders next year.

Dean Finch, group chief executive, said: “Our immediate priorities have been to protect the health and wellbeing of colleagues and customers and secure the long term sustainability of the business. We have acted swiftly and decisively and have made significant cost-cutting measures, struck agreements with public authorities and contracted customers to maintain payment, and secured enhanced liquidity and covenant waivers. These have all been crucial in underpinning our future prospects.

“The placing builds on these actions, providing enhanced resilience and financial flexibility as we address an extended period of uncertainty and it increases our ability to invest in further growth opportunities once this period has passed. By strengthening our balance sheet we are also able to set a new, lower gearing target. Alongside our industry leading operational capabilities, I believe a stronger balance sheet will be a source of differentiation and competitive advantage for National Express going forwards.

“National Express went in to this pandemic as the leader in all the markets we serve. Whilst the next few months will remain uncertain, we are already seeing a number of growth opportunities as existing and potential new customers seek a financially secure and reliable operating partner.

“I look forward to maintaining our leadership position and resuming full services as soon as possible, delivering safe, high-quality services to our customers as well as strong and sustainable returns for our shareholders.”