School bus and coach ops fuel National Express

National Express reported record annual profit and hiked its dividend after a stellar performance from its UK coach and US school bus operations.

Pre-tax profit rose to £180.2m in the year ended 31 December 2011 from £97.3m the year before after growth in every division. Full year revenue grew 5.3% to £2.2bn.

Passenger journeys rose by 5.4m to 656.6m journeys as more people took buses to avoid higher motoring and parking costs. The group posted record profits at its UK Coach business of £34.9m. Operations in North America rose 5% in the last year as government budget cutback prompted an increase in the number of outsourced bus operations.

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Commenting on the results, chief executive Dean Finch highlighted that in just two years National Express has moved from reporting losses to the record profits.

"Following a strong end to 2011, we expect passenger revenue to continue to grow in each of our bus and coach divisions. In 2012, as austerity measures, fuel and fare increases make passenger travel by other modes relatively more expensive, National Express provides attractive, value for money alternatives.

"We believe that our portfolio of businesses will provide sustainable earnings growth, continued cash generation and exciting opportunities for growth in selected markets in the medium term."

The final dividend has been increased 8.3% to 6.5p.

CJ