National Express returns to profit

The group made a half year pre-tax profit of 24.5m in the six months to the end of June, compared with a loss of 48.1m last year.

Chief executive Dean Finch said: "Progress in the first half has been good. With a strong financial platform, National Express is now delivering the benefits from its business improvement programmes.

"Despite challenging economic conditions, greater operational focus is having a positive impact and we will continue to progressively drive improvement in performance and cut costs.

"We have secured growth opportunities, particularly in North America and Spain, in which we will selectively invest in the second half of the year. We expect trading to remain resilient in the next six months and we look to the future with confidence."

Revenue declined by 26 per cent on a year earlier to 1.06bn from 1.42bn, reflecting the return of the East Coast rail franchise to the Government and the sale of its Travel London bus business, together with an adverse currency impact.

Nationa Express said it is in talks with the Government to discuss how to extend its existing rail franchises.