National Express on track

Profits at National Express are expected to be in line with the board's previous forecasts with the bus and train group having seen revenues and profits grow across the board in 2011.

"Flexibility in our networks and fleet operations, a focus on optimising costs and selective investment in new services and growth opportunities combine with secure, long-term funding and cash liquidity to create a resilient, highly effective public transport business," the statement said.

It is this strategy, National Express assures, that leaves it positioned to deliver "significant earnings growth" in its non-rail businesses next year.

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In the UK Bus division, commercial passenger revenue is expected to have grown by 4% in the 12 months to 31 December, helped by passenger numbers having recently returned to growth in the West Midlands. Full-year margins should be back above industry levels.

As for UK Coach, revenues are expected to be at least 5% higher this year, with airport, long-haul and London commuter services performing particularly well. Meanwhile UK Rail revenue growth should be 6% with passenger volumes growth remaining strong at c2c.

The firm's international operations in Spain and North America are also said to be performing strong with revenues up 5% and 8%, respectively.

"National Express is finishing 2011 in excellent shape," said Chief Executive Dean Finch. "We continue to invest in new fleet and offer exceptional value to our customers, enhancing the quality of our services at prices our passengers can afford."