Public transport operator National Express saw group revenue slide 17 per cent in the half year ended 30 June while pre-tax profit fell £13.5m following the end of the East Anglia rail franchise.
The Birmingham headquartered firm also announced that chairman John Devaney will retire in early 2013 to focus on his other business commitments. The search for a replacement is underway, the group said.
National Express group revenue fell to £934.1m as non-rail revenue increased 3% to £808.9m and rail sank 63% to £125.2m. Underlying group revenue was up 3%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Pre-tax profit for the half year fell to £82m from £95.5m previously and statutory profit fell to £32.1m from £54.7m in 2011.
Commenting on the results, chief executive Dean Finch said: "The first half of 2012 has seen a resilient underlying performance across the group, considering the headwinds we have faced. This reflects a reassuringly stable performance in Spain, accompanied by good growth in UK Bus and North America, with lower profits in our Rail and UK Coach businesses, as expected."
Finch said he expects this trend to continue in the second half of the year, with further progress from UK Bus and its recent North America acquisitions.
"UK Coach will still face headwinds but should progressively mitigate concession funding changes," he added.
"Across the group, we continue to drive operational efficiency, cost control and incremental revenue growth, focusing on improving returns on invested capital."
Its Spanish business Alsa continues to perform well despite the impact of the Eurozone crisis and following company action, it is collecting money owed to National Express by the Spanish government.
Group net debt increased by £196m during first half year to £829.7m, reflecting acquisitions and the East Anglia rail handover, with gearing at 2.47 times EBITDA.
An interim dividend payment of 3.15p had been recommended, up 5% from last time.
CJ
