National Express boosted by American growth

The British bus, coach and trains operator reported an 18 per cent rise in total revenues at its North American school bus unit, which includes the impact of the Petermann school business, which it bought last May.

The company said its North American transit operations were delivering annual revenues of around $75m and that it has an active contract pipeline worth $200m in revenues to bid for this year.

National Express said revenue in Spain has been resilient despite a backdrop of economic uncertainty and austerity, with underlying sales at its urban bus unit up five per cent since the start of the year. However, sales at its Spanish intercity coach business fell 5 percent during the period.

Its Moroccan bus business was growing well, while its new German coach service had made a good start, it said.

The group said revenues at its British bus division were up three per cent so far this year with sales at its UK coach service up one per cent.

It said its c2c commuter rail service, which runs between London and South Essex, had delivered “good revenue growth” so far this year and that it was in “constructive negotiations” with Britain’s Department for Transport to extend the c2c contract, ahead of rebidding for the long-term Essex Thameside franchise.

The company said its financial position remained strong, with ample liquidity and medium-term debt maturity. It expects its full year capital investment to be around £100m after having spent some £40m in the first quarter.