National Express in double contract win

Transport company National Express Group has cheered investors with news of a contract wins in America and Spain.

The firm's North American transit business has scored a new transit contract, which will begin on December 1st across the Piedmont 'Triad', North Carolina. The contact is worth around $12m of revenue over an initial period of two years, with the option of a further three.

Under the deal, the company will manage and operate 42 vehicles, seven days a week. Thirteen express and shuttle routes will run in and between the three cities of the Piedmont Triad, and are expected to carry 500,000 passengers a year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The group's Spanish business, ALSA, has also won the tender to provide bus services in Guadalajara. The contract, which is up to 12 years in length, will generate revenue of up to €77m and begins in mid-2013. ALSA will operate a fleet of 27 buses in Guadalajara carrying an estimated 3.7m passengers a year.

As part of the deal it will invest around €7m to help deliver hi-tech vehicles with on-board Wi-Fi and real-time information systems on bus stop screens.

Dean Finch, Group Chief Executive of National Express, said: "We are delighted with both of these contract wins. They demonstrate the attractiveness to local authorities of our market-leading and value-for-money services. Growth in our North American transit and Spanish urban businesses are important parts of our strategy. We look forward to serving the people of Guadalajara and Piedmont for many years to come."

The share price rose 5.17% to 173p by 14:45.

NR