28th Feb 2019 09:07
LONDON (Alliance News) - National Express Group PLC on Thursday delivered a "record" set of annual results and rewarded shareholders with a 10% dividend increase.
Shares in the FTSE 250 transport operator were trading up 0.3% at 424.80 pence each early Thursday morning after hitting a high of 436.10p after the market opened.
For 2018, National Express posted pretax profit of GBP177.7 million, up from GBP156.4 million a year ago.
Revenue increased to GBP2.45 billion from GBP2.32 billion, while operating profit was up to GBP241.5 million from GBP197.9 million.
Free cash flow rose to GBP198.6 million from GBP146.4 million.
Chief Executive Officer Dean Finch said: "I am delighted we have again delivered a record-breaking set of results. Revenue, profit and free cash all increased significantly, with organic top line growth in every division augmented by strategic acquisitions and cost control."
The transport operator proposed a 10% increase to its final dividend to 10.17 pence per share, making up for a total annual payout of 14.86p, up from 13.51p.
With regards to Brexit, National Express said it does not expect the UK's exit from the European Union to pose a material threat to the company. It added that it has "suitable mitigation plans" in place however Brexit unfolds.
"We no longer run scheduled operations between the UK and the Continent, therefore the main Brexit risk specific to the group is that inbound and outbound airport travel in our UK coach business may be impacted should air travel be materially reduced due to restrictions or currency fluctuation," National Express explained.
Looking at 2019 as a whole, the company said it is "well placed to continue to grow" despite many uncertainties.
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