Insider Media Limited

Bus and coach operator National Express has increased group revenue by 5 per cent in the first quarter of 2011. Amidst reports of a bidding war over the company's rail division, Birmingham-based National Express said it was on course to "significantly improve" its financial performance in 2011.

The company released its interim statement for the three-months to 31 March this morning.

Alongside the 5 per cent increase in revenue on the comparable 2010 period, National Express said its normalised pre-tax profit was up 30 per cent.

Revenue in the company's UK bus division was up 7 per cent and 3 per cent in its coach division.

National Express said it was "disappointed" by the news that it would not continue serving the short-period management contract for Greater Anglia, from February 2012. The company's rail division grew 8 per cent within the threee-month period.

The company also said it had £30m net capital expenditure to support growth in Spain and North America.

Dean Finch, group chief executive, said: "National Express has delivered a strong first quarter, with improving revenue growth and a significant increase in profitability that builds on the foundations for success we laid in 2010.

"Our continued cost control initiatives and increased investment programme are both bearing fruit and demonstrate that our strategy is sound and will deliver significant shareholder value over the long term."