National Express on track to meet expectations after steady growth
BIRMINGHAM-based public transport group Nastional Express has reported a steady growth in revenue across its operations as it approaches year-end.
In a full-year trading update, the company said overall trading across the group had remained positive and in line with the trends reported in the third quarter interim management statement in October.
Revenue has continued to grow strongly in its UK Coach business, with steady growth in UK Bus, Rail and North America. The intercity coach revenue trend in Spain continues to show improvement.
Cash generation is said to be strong and it continues to make good progress in developing its pipeline of capital-light opportunities.
It said it remained on track to deliver the board’s expectations for this year.
Dean Finch, Group Chief Executive, said: “Trading continues to be encouraging. UK Coach in particular has seen strong revenue growth, driven by more passengers using our competitively priced services. We are focusing investment in those areas of the group where it makes the biggest impact to our customers and we are seeing increasing numbers of people choosing to travel with National Express, whether by coach, bus or rail.”
Its UK Bus business, which includes Travel West Midlands, has seen like-for-like commercial revenue improve throughout the year. It is expected to be 3% higher overall in 2013.
“We continue to invest in new fleet, improved on-bus quality, technology to enhance operational efficiency, customer mobile information and the progressive roll out of commercial smartcards. Our industry-leading agreement with Centro in the West Midlands is also driving service and punctuality improvements,” it said.
The UK Coach business continued its strong performance, benefiting from lower prices in real terms with value being passed on customers. Volume is growing by 8%, with greater demand, improved retail distribution and new contracts.
Core express coach revenue is expected to increase by 9% in the fourth quarter and 6% in the full year. It is also expecting to benefit from a new Christmas Day service, putting it ahead of rival operators which shut down.
In Rail, the company has been selected by Transport Scotland for the shortlist to bid for the ScotRail franchise. The group will also be submitting three rail tenders in the UK in the next four months (Essex Thameside, Crossrail and ScotRail), as well as starting work on the Berlin Ringbahn bid.
It said it would continue to bid for further rail contracts in Germany and Transit contracts in North America.
Across the group, National Express is currently bidding on rail contracts worth £10bn in revenue.
