First half profits drop at National Express

The bus and train operator posted a pre-tax profit of £71.8m, down from £82m in the same period last year.

It won contracts worth £1.7bn in Britain, Germany, Morocco, and the United States over the period, the firm said.

Net debt fell by two per cent over the period, and was on track to meet a target of two times earnings before interest, tax, depreciation and amortisation by the end of 2014.

The firm’s interim dividend rose three per cent to 3.25p per share, as non-rail revenue grew 10 per cent and operating profit rose 2.7 per cent.

“We have had to address some significant headwinds in our existing markets while continuing to build a strong pipeline of new business opportunities,” said Dean Finch, National Express group chief executive.

National Express plans to bid for the full Essex Thameside rail contract later this year and has been shortlisted for the Crossrail bid process expected to start later this year, with the winner to be announced at the end of 2014.

The company announced this month that it had started the mobilisation of the two German rail contracts secured earlier this year and due to start in December 2015.