Pre-close Statement

RNS Number : 4385T

National Express Group PLC

13 December 2012

 



Press release

13 December 2012

National Express Group PLC

Pre-close Statement

National Express Group PLC ("National Express" or "the Group"), the international public transport operator, today updates on trading ahead of its year end on 31 December 2012.

Overview

National Express has continued to deliver a good revenue and profit performance in 2012 and is on target to deliver full year results in line with the Board's expectations.

Dean Finch, Group Chief Executive, commented: "The Group remains on course to deliver its 2012 targets, despite the significant challenges of prevailing economic conditions and government austerity measures. By focusing on good value, high quality transport services, we have delivered growth across our core bus and coach operations, supplemented by a strong performance in rail. Recent bid wins from an expanding pipeline of opportunities, combined with strong cash generation, underpin our platform for growth in the medium term."

Spain

Total revenue growth at Alsa in the year to date is 3%. Recent revenue trends in intercity coach have remained in line with those reported for the third quarter. Urban revenue in the year to date has grown by 3% in Spain and 15% in Morocco. Alsa continues to develop a range of growth opportunities and recently won the tender to provide urban services in Guadalajara, starting in April 2013, worth €77 million in total revenue over a twelve year period.

North America

North American revenue has grown by 3% underlying in the year and 18% in total, as we successfully integrate our acquisitions. Building on a strong performance in the 2011/2012 school year and a 97% contract retention rate in the last bid season, the division has seen further growth from its new contract wins and organic price increases. There has been some recovery in discretionary and lunchtime routes as the new school year has progressed. Leveraging its three small acquisitions this year, the Transit team has won a second bid, in paratransit in Ohio, adding to the earlier announcement of its first win in North Carolina, and has a strong pipeline of contract bid opportunities.

UK Bus

Commercial revenue has increased 4% in the year to date, benefitting from our fleet investment programme. Our travelcard products continue to grow, with excellent student card sales in the back to college period. With a new concessionary agreement in place for the next three years, the business is well placed to continue to deliver growth over the medium term.

UK Coach

Core revenue from non-concession passengers has grown 2% in the year to date, while last year's withdrawal of the government concession subsidy has seen a small offset from a good performance in our Olympic contracts. New routes and yield management are driving passenger volume recovery, with core Coach passenger volume up 4% in the year.

Rail

c2c remains the best-performing franchise in the country (with a PPM* of 97.4%), and has driven good revenue growth. The Group has recently prequalified for a fifth rail bid in Germany.

Financial position

Our financial position remains robust, with a strong non-bank and bank funding profile, and a balance of debt maturities in place. We were pleased to note the recent change to Positive from Stable outlook for the Group's debt rating by Moody's Investors Service.

With the Group's recent investment programme complete and a focus on capital-light development opportunities, we are driving strong cash generation and free cash flow across our businesses.

The Group will announce its results for the full year on 28 February 2013.

Enquiries

National Express Group PLC
Jez Maiden, Group Finance Director	}	07770 701797
Stuart Morgan, Head of Investor Relations	}
Anthony Vigor, Director of Policy and External Affairs		07767 425822
Maitland		020 7379 5151
Neil Bennett
George Hudson

There will be a conference call for investors and analysts at 0830 on 13 December 2012. Details are available from Laura Dean at Maitland.

Notes

Revenue is measured on an underlying basis, except where otherwise stated, and compares revenue for the 11 months ending 30 November 2012 with the prior year on a consistent basis, after adjusting for the impact of currency, acquisitions, disposals and rail franchises no longer operated.

Coach core revenue measures travel by non-concession passengers on the National Express network.

*Public Performance Measure for the 12 months ended 10 November 2012.

 

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