6th May 2015 06:36
LONDON (Alliance News) - Public transport company National Express Group PLC on Wednesday said it is on track to meet its expectations for the year on the back of revenue growth across its divisions in the first four months of the year.
The FTSE 250-listed company said revenue in the first quarter rose 4% at constant currencies, with passenger volumes rising by 2% across its divisions. Group profit is ahead year-on-year so far in 2015, the company said, after adjusting for costs related to poor weather conditions in North America and the strike which hit the company in Spain last year and after absorbing increased premium charges for its c2c franchise this year.
The group said it has seen a strong financial performance in its UK bus business, boosted by good passenger demand and cost controls in the division, while its c2c rail franchise has started well, with passenger growth of 4% and revenue growth of 10% on the back of strong peak and off-peak travel.
Revenue in its Spanish business grew 4% in the first four months on the back of 7% passenger growth in the business, while revenue in Morocco rose 17%, driven by the scaling up of its operations in Tangiers. The group also saw good contract retention in its North America school bus business at 99%, with an average price increase of 5% in the recent bid season offsetting higher wage pressures in the division.
"We have made a good start to 2015 and are on track to deliver the board's expectations for the full year. The results reflect our ongoing commitment to deliver excellent operational performance and customer service. We continue to drive our strategy to develop opportunities in existing and new markets with a number of exciting bids submitted since the start of the year and our plans for further bids are progressing well," said Dean Finch, National Express' chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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