Revenue and profit down at NatEx

National Express Group revenue dropped by 18 per cent to £1,831,2million in 2012, down from £2,238,0million in 2011 as the result of a dramatic reduction in its rail operations. However group operating profit was down by just under 6 per cent at £211.9million (2011: £225.2million).

Dean Finch, National Express Group chief executive, notes: "I am very pleased with the progress that National Express Group as a whole has made, with four of our five divisions performing strongly. Our most significant challenge was the decline in National Express Coach’s elderly and disabled passengers by one million after the UK government’s removal of its coach concession scheme. This made 2012 one of the most difficult years in National Express Coach’s 40-year history and has driven the decline in National Express Group operating profit.

“However, our recent contract wins in Spain and North America and selection by German authorities to run two rail contracts are an indication of the international strength of our business, something we are determined to build on in 2013.”

The group's international expansion includes the launch in April of city2city in Germany’s newly liberalised coach market, which NatEx says will combine the best of its Spanish ALSA and UK Coach business models.

Finch adds: “Our UK Coach result in 2012 was disappointing. We over-estimated our ability to mitigate the loss of the government’s senior citizen concession funding. However, we grew our non-concession passenger volumes by 5 per cent and started to implement structural changes in revenue, cost and organisation.”

In the group's UK Bus business revenue grew by 2.1 per cent to £269.0million (2011: £263.5million). Operating profit rose by over 4 per cent to £34.1million (2011: £32.7million). The company says that commercial revenue growth was supported by £9million of cost and procurement efficiencies which more than offset the impact of a £4million reduction in BSOG.

www.nationalexpressgroup.com