Profits reach £82m at National Express

Public transport group National Express made profits of £82 million in the first six months of the year, figures revealed today.

The Birmingham-based group said non-rail revenue grew by three per cent from £783m to £808m but profits before tax were down £13.5m. The firm, which also runs the Midland Metro service, is to recruit 1,700 staff in the region over the next three years from its current level of 5,400. It re-organised bus routes in Wolverhampton last year with the opening of the city's new £22.5m bus station.

Group chief executive Dean Finch said further progress was expected from UK bus operations in the second half of the year.

It saw lower profits in its rail and coach business for the half year.

The group lost UK Government subsidy for coach concessions and has launched a number of initiatives to offset last year's removal of the senior citizen scheme.

"Across the group, we continue to drive operational efficiency, cost control and incremental revenue growth, focusing on improving returns on invested capital and creating long term economic value for shareholders," said Mr Finch.

"National Express owns and operates some high quality assets in a number of different markets and is well placed to exploit the emerging opportunities in these difficult times and continue to grow the business," he added.

Revenue fell from £335m to £125m at its rail division in the six months following the loss of its East Anglia franchise.

Its Spanish bus business Alsa proved resilient despite the eurozone crisis. Transport revenue increased by five per cent with coach revenue up 3 per cent. Urban bus revenues in Spain grew by six per cent.

In North America the bus operation saw increased profit and revenue was up by 10 per cent.