30th Oct 2014 07:59
LONDON (Alliance News) - Transport operator National Express Group PLC Thursday said its third-quarter pretax profit was up nearly 15% on the year, driven by revenue growth, performance improvements and cost cutting, and said it is on track to meet its profit and cash expectations for the year as a whole.
In a statement, it said the growth meant it was progressively recovering the one-off hits and currency translation impact it suffered in the first half of the year.
National Express said passenger numbers and revenue are up in all its divisions so far this year. Revenue was up 4% on the year in the three months to end-September in its UK bus unit and 3% in the year to date.
It was buoyed by new contract wins and retentions, including a 10-year deal to run bus services in Bahrain, and the retention of its largest Spanish concession to have come up for renewal so far - a EUR600 million total revenue contract for regional coach services in the Bilbao metropolitan region for up to 15 years.
The company said it is on course to deliver its full year free cash flow target of GBP150 million, meaning it will have delivered nearly GBP500 million between 2012 and 2014.
"We will continue to focus on cash generation in the coming years, developing capital light opportunities, reinvesting selectively in growth projects and driving shareholder value. We are deploying capital selectively to protect and grow the business, investing in over 250 new buses over the next 12 months in UK Bus," it said in a statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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