National Express announces good results

National Express Group, the bus and train operator, announced today that its 2007 results would be at the top end of market expectations after a strong second half.

The company announced like-for-like revenue growth of 11% on trains, 6% on buses and 6% scheduled coaches.

The company said it had delivered an ‘exceptional operational performance’ within the UK, where its sales had been boosted by strategic fare initiatives. It added that the last 3 months had been exceptionally busy with the firm launching its new East Coast rail franchise service and acquiring the Kings Ferry Group, a coach company based in Kent.

Furthermore, its Spanish bus and coach operations traded well in the second half of 2007 and it forecast it would report full-year passenger growth of 4% as well as maintaining market-leading margins.

National Express said it had started operating 14 new contracts in North America, where it operates school bus services.

The group said it ends the year on a positive note with strong ongoing cash flow generation and it remains confident for the group’s future prospects during 2008.

Yesterday, shares in the group closed at 1,061p to value the business at £1.67 billion.

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