Profits on track at National Express

NATIONAL Express Group, which handed back the East Coast Main Line rail franchise to the government last month, today said revenues had stabilised in the fourth quarter and that it expected full-year profit to be in line with its expectations.

The transport company, which earlier this month completed a £360m rescue rights issue, said underlying revenues at its British bus unit grew 4% in the final quarter of the year and that reduced demand at its East Anglia rail franchise was being offset by government support.

National Express, which last week said Dean Finch, the boss of rail contractor Tube Lines, would become its chief executive next spring, said its British business was on track to deliver its targeted £50m of cost savings for 2009.

Its Spanish business saw the rate of decline shrink but North America continued to suffer as contract renewals slowed, the company said.

Executive Chairman John Devaney said: “Overall, the underlying revenue trend has stabilised in the fourth quarter … with full year profit expected to be consistent with the previous outlook.”

The group is expected to report an average pretax profit of £105.7m for 2009, according to analysts.