27th Feb 2014 11:22
LONDON (Alliance News) - National Express Group PLC said Thursday that it has been making good progress against its strategic goals, reporting boosted pretax profit and group revenue for the full-year.
The public transport company said its financial performance for the full-year came in strong, with normalised pretax profit reaching GBP143.7 million, up on its targets and recording a fourth consecutive record year for operating profit in its core non-rail business, up 7% in 2013.
Total group revenue grew 3% during the year to GBP1.89 billion from GBP1.83 billion last year
In its full-year results for the year to December 31, 2013, core non-rail return on capital employed grew to 11.1% from 109.6% in 2012.
During the year the firm also secured GBP1.8 billion in future revenue from new markets for National Express, as well as generating over GBP180 million in free cash flow and reducing net debt by more than GBP80 million.
Group normalised profit took a hit during the period, declining to GBP143.7 million from GBP164.1 million, although this was expected, said National Express, as it relates to the handover of the National Express East Anglia franchise in 2012.
The firm has proposed a full-year dividend of 10.0 pence per share, up 3% on last year.
Chief Executive Dean Finch said, "National Express has made important progress in 2013. These results show how we have been able to address the headwinds facing the Group at the start of last year. We beat our targets, especially on free cash flow, and have raised the dividend to reflect our confidence. I am particularly pleased with the strong growth in UK Coach, following its difficult year in 2012, and our performance in North America.
"We also made important strides in business development during 2013. We entered new markets, most significantly Germany. We have won important new contracts and are shortlisted for a number of rail franchises in the UK and Germany," he added.
Looking ahead, National Express said it has secured new contracts in Spain and Morocco and has submitted bids for competitions for Essex Thameside and Crossrail contracts. The firm adds that it finished the year with a new business pipeline of opportunities worth over GBP10 billion in revenue.
Finch adds that the firm intends, "to grow profit across all of our non-rail businesses and develop our rail business by winning new franchises."
Shares in the transport group were trading down 0.73% at 298.3 pence per share Thursday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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