24th Sep 2020 09:28
(Alliance News) - National Express Group PLC on Thursday said it traded "slightly above" its expectations and is encouraged to see continued passenger growth across the business.
The FTSE 250-listed public transport operator traded above its guided base case which assumed revenue to be around 50% of pre-Covid 19 expectations until the end of August. It also said that ongoing tight cost controls are driving positive growth in earnings before interest, tax, depreciation and amortisation, and in cash flow.
Both its UK bus businesses have continued to see good passenger growth in recent weeks, National Express said, adding that it has introduced additional coach services to meet social distancing restrictions.
The company's West Midlands services is running 103% of last year's service and carrying 58% of its passenger numbers, while the Dundee services is operating 92% of last year's service and carrying 61% of passengers.
"We continue to be pleased that our strong customer relationships are sustaining high levels of revenue during the pandemic's on-going uncertainty. This robust revenue collection and on-going tight cost control is underpinning positive Ebitda and cash flow projections," said Chris Davies, interim chief executive and finance director.
"We remain resolutely optimistic about the longer term opportunities for the group. In addition - as the recent contract wins in Lisbon and California demonstrate - they also provide the platform for future growth once we emerge from the pandemic." Davies added.
National Express has provisionally awarded an up to nine-year contract to run 240 urban buses in Lisbon, Portugal. It also has won a five-year, paratransit contract for up to 75 vehicles, in the US state of California.
The company's underlying liquidity position remains strong, broadly in line with the half year position.
Shares in Birmingham-based National Express were up 4.0% at 130.00 pence each on Thursday morning in London.
By Tapan Panchal; [email protected]
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