National Express Group PLC Interim Management Statement (2403M)
May 06 2015 - 1:02AM
UK Regulatory
TIDMNEX
RNS Number : 2403M
National Express Group PLC
06 May 2015
National Express Group PLC
6 May 2015
Interim Management Statement
National Express Group PLC ("National Express" or "the Group"),
a leading international public transport group, operates bus and
coach services in the UK, continental Europe, North Africa, North
America and the Middle East, together with rail services in the UK.
It today reports its Interim Management Statement for the period
from 1 January 2015 to date.
Overview
The Group has made a good start to the year with revenue up 4%
(in constant currency) and we are on track to deliver our profit
and cash expectations for the year. Pleasingly, all divisions have
delivered revenue growth, supported by rising passenger demand.
Performance highlights include:
-- Growth in revenue across all divisions with passenger volumes up 2%
-- Group profit ahead year-on-year after adjusting for one-off
costs of adverse weather in North America and the strike in Spain
last year, and also after absorbing increased premium charges in
c2c in 2015
-- Gearing is lower than in the same period last year and we
remain on target to generate GBP100 million of free cash flow in
2015
-- Strong financial performance in UK Bus, supported by passenger demand and cost control
-- Encouraging start to the new c2c franchise ahead of the bid
plan, with passenger volume growth of 4% and revenue growth of 10%
boosted by good growth in peak and off-peak travel
-- Revenue management in Spain delivering growth of 4% in
revenue and 7% in passenger volume on actively managed routes -
further roll out ongoing
-- Strong growth in Morocco with revenue up 17%, driven by the
scaling-up of operations in Tangier
-- Continued strong contract retention in North America School
Bus at 99% coupled with an average price increase of 5% in the
current bid season, offsetting wage pressures
-- New contract wins in UK Coach to operate from Stansted
Airport and with British Airways to provide transport services for
passengers and crew across the UK
-- 1 million passenger journeys delivered in Bahrain since the
successful mobilisation of our bus service operations in
February
GBP12 billion pipeline:
-- Submitted a further bid in German rail for Rhine Ruhr Express
("RRX"), a 15 year contract with revenues in excess of EUR2 billion
and pre-qualified for a number of other franchise bids
-- Nuremburg S-Bahn decision remains in appeal
-- Submitted PQQ for East Anglia rail franchise bidder shortlist
-- Submitted a joint bid to operate a 400 vehicle urban bus
service contract in Makkah, Saudi Arabia
-- Preparing bid for Lisbon Bus and Metro franchises
Dean Finch, Group Chief Executive, commented:
"We have made a good start to 2015 and are on track to deliver
the Board's expectations for the full year. The results reflect our
ongoing commitment to deliver excellent operational performance and
customer service. We continue to drive our strategy to develop
opportunities in existing and new markets with a number of exciting
bids submitted since the start of the year and our plans for
further bids are progressing well. We have seen the successful
mobilisation of our operations in Bahrain, our first bus service
contract in the Middle East, which we see as an important stepping
stone towards further growth in the region.
We continue to see Germany as an important market for our
ambitions in rail and see prospects for further growth there. We
believe that, in time, German Rail will make a significant
contribution to Group earnings. Around the world, whether as a
result of privatisations in Western countries or pressure for
improved public transport in developing and emerging economies, we
see a range of exciting opportunities for us. Our portfolio of
assets uniquely positions National Express to exploit these
opportunities.
Cash generation remains strong and we are well placed to seek
new avenues of growth, enabling us to continue to deliver
shareholder value. In light of this and our long-term future in
rail, we will review our dividend policy as the year
progresses."
The Group will announce its results for the six months to 30
June 2015 on Wednesday 29 July 2015. There is no scheduled trading
update before that announcement.
Enquiries
National Express Group PLC
Matthew Ashley, Group Finance Director
Anthony Vigor, Director of Policy and
External Affairs 0121 460 8655
Louise Richardson, Investor Relations 07767 425822
Manager 07827 807766
Maitland 020 7379 5151
Rebecca Mitchell 07951 057351
Notes
Unless otherwise indicated, revenue is stated on an underlying
basis, which compares the current year with the prior year on a
consistent basis, after adjusting for the impact of currency,
acquisitions and disposals.
Profit is stated on a normalised basis, before exceptional costs
and intangible asset amortisation (as defined in the press release
for the Full Year results for the year ended 31 December 2014).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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