East Coast exit hits National Express

TRANSPORT group National Express has made a half-year loss after setting aside £54.7m to cover the cost of exiting the East Coast rail franchise.

The firm made a pre-tax loss of £48.1m in the first six months of 2009, down from a profit of £52.4m last year.

Earlier in July, the Government said it would take the East Coast route back into public ownership later this year.

National Express, which is the subject of takeover interest, said it had lost £20m on the East Coast route this year.

A group including Spain’s Cosmen family and private equity firm CVC has made a takeover proposal for National Express.

Rival UK transport group Stagecoach has also said it is eyeing National Express, saying it may seek to pick up some of National Express’s assets if it is bought by a consortium.

Reports have suggested that Stagecoach may launch its own bid for the company.