31st Oct 2013 07:49
LONDON (Alliance News) - National Express Group PLC (NEX.L), an international public transport operator, said that trading in the third quarter of 2013 improved across the Group. The Group remains on target to deliver its expectations in the full year.
In its Interim Management Statement for the year to date, the firm said that revenue grew 5% in the quarter and 3% in the year to date. It has delivered strong passenger volume growth in UK Coach and Morocco, and were growing patronage in UK Bus. The company's investment to develop its pipeline of new capital-light business opportunities continues to show good progress.
In UK Bus, Like-for-like commercial revenue increased by 3% in the third quarter, with passenger numbers 2% higher.
According to the company, UK Coach delivered an exceptional performance in its seasonally important third quarter, with the August Bank Holiday week the best on record for passenger volume and revenue. Core express revenue in the year to date was up 5%. Overall, UK Coach fully offset almost 10 million pounds of non-repeating Olympic and Rail Replacement revenue from the third quarter of 2012.
Total North America revenue grew 15% in the year to date, reflecting the full year impact of the Petermann acquisition and new Transit operations. In School Bus underlying revenue increased by 3% in the period.
In North America, the new school year operational start-up has gone well. The number of routes on existing contracts is flat year-on-year and discretionary route volumes are also similar to last year. The company said it continues to drive efficiencies through technology and process standardisation. Net of the contract changes, overall bus volumes are expected to be about 1% lower year-on-year.
In Spain, Alsa's revenue was flat in the third quarter and increased by 2% in the year to date. The impacts of austerity and recession in Spain were offset by new contracts, with third quarter profit slightly higher year-on-year.
The company stated that it remains on track to deliver the Board's profit, cash and new business expectations for 2013. Sterling's recent strengthening will reduce the year-on-year gain on translation of profit from overseas operations.
The firm noted that it remains on course to generate 150 million pounds of free cash flow during the year. Group net debt at the end of September 2013 was over 40 million pounds lower than the prior year comparative. Its target for gearing at the year-end is 2.5 times net debt to EBITDA, reducing to 2 times in 2014.
Copyright RTT News/dpa-AFX
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