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National Express revenues and profit grow in third quarter

By Iain Gilbert

Date: Thursday 17 Oct 2019

National Express revenues and profit grow in third quarter

(Sharecast News) - Birmingham-based transport operator National Express posted a rise in third-quarter profit and revenue on Thursday amid growth across all divisions.
National Express posted a 14.5% increase in revenues for the three months ended 30 September and a 14.3% jump in operating profits. Group operating margins were also up in the period.

The company said its Spanish and Moroccan division, ALSA, had performed "particularly well" during the quarter, securing significant new contract wins, renewals and mobilisations.

North American revenues were up 20.6% year-on-year, while UK revenues were up 3.2%.

National Express cautioned that its Spanish concession renewal process had been further delayed, after a successful legal challenge by another operator against its live tenders.

The group said these would now be revised to address the legal challenge and that the further delay only reinforced its previous guidance that any significant impact from ALSA's earnings would not be felt for "a number of years".

Chief executive Dean Finch said: "ALSA performed particularly well and our UK coach business grew despite lapping a very strong comparative period last year. North America posted strong growth, boosted by both our WeDriveU acquisition and a good back-to-school performance including improved wage control.

"With these results, the further delay to Spanish concession renewal and our recent successes in winning, retaining and mobilising significant contracts, our outlook remains positive."

As of 0815 BST, National Express shares were up 1.02% at 456.40p.

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