National Express in gear for year

Bus and train group National Express said overall third quarter trading remained resilient, despite increasing austerity measures, with profit on target for the year.

Bus and train group National Express said overall third quarter trading remained resilient, despite increasing austerity measures, with profit on target for the year.

The transport operator saw a strong performance in UK bus and in rail while coach endured a difficult year.

It added that 2013 fuel costs will increase by £11m year-on-year. The group, which has completed its hedge fuelling programme for 2013, said UK bus fuel costs will increase by £3m, in Spain by £4m and North America by £4m.

Otherwise it said trading remained resilient in Spain while North America school bus revenue grew 2% year-to-date after a successful start-up to the new school year and following a strong bid season and 97% contract retention.

"The group remains on track to deliver its profit expectations for 2012. The outlook for 2013 remains challenging with low economic growth, government funding pressure and fuel cost inflation likely to constrain progress," the group said in its third quarter update.

"However, our developing pipeline of opportunities in new and liberalising markets will present attractive avenues for growth."

National Express said its financial position remains strong and further analysis of the forthcoming IAS 19 pension accounting change in 2013 has confirmed a limited adverse impact, of around £2m to the UK Bus division earnings, with negligible effect on operating profit in other divisions.

CJ

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Three solar stocks to invest in
Renewables

Three solar stocks to invest in

This week, professional investor Nicholas Mersch of the HANetfS&P Global Clean Energy Select HANzero UCITS ETF tells us three solar stocks to invest i…
12 Aug 2022