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.

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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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