12th Nov 2020 11:19
(Alliance News) - National Express Group PLC on Thursday said it has reinstated its annual guidance following a good trading performance in recent months.
The FTSE 250-listed public transport operator said it continues to generate a positive earnings before interest, tax, depreciation and amortisation, with October hitting the highest monthly total this year.
Improving revenue performance has continued, National Express added.
National Express noted further contract wins in recent weeks, one in Portugal, where the company was provisionally awarded a 200 urban bus contract in Porto. In the UK, the company won a "major" employee shuttle contract, as well as the company's first accessible transport contracts outside the West Midlands.
Given the current positive performance, National Express has reinstated its normalised Ebitda guidance of between GBP170 million and GBP190 million for 2020 financial year. This will be down at least 63% from Ebitda of GBP510.1 million in 2019.
The company however noted that its recovery pace has been slowed by the recent second wave of infections and the subsequent lockdowns.
Chief Executive Ignacio Garat said: "The positive vaccine news of the last few days may signal a faster service recovery in the medium term than we had hitherto envisaged. Nonetheless, these remain difficult times for the public transport sector, at least in the short term. I am convinced, however, that National Express will continue to weather the challenges we face and has strong foundations in place to prosper once the pandemic is over."
National Express shares were up 0.8% at 230.80 pence each in London on Thursday morning.
By Greg Roxburgh; [email protected]
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