National Express in profit drive
Pre-tax profit has soared 26 per cent at Birmingham-based transport operator National Express. The company described its latest six-month period as "a rapid improvement" on previous results and said it would now look to grow organically and through bolt-on acquisitions.
The coach, bus and train operator said pre-tax profit hit £95.5m in the six months to 30 June 2011, a rise of more than a quarter on its comparable 2010 result of £75.7m.
Group operating margin increased to 10.5 per cent, up from 9 per cent in 2010, while statutory profit for the period nearly trebled to £54.7m.
Over the six-month period, National Express secured £250m of new contracts in North America and Spain. These wins contributed to a 23 per cent rise in operating profit to £117.6m.
Dean Finch, National Express Group's chief executive, said: "We have had a strong first half, and driven margin enhancement and organic growth across our businesses. Operating profit has grown by 23 per cent and we have reinstated the interim dividend.
"We continue to invest in growth and are well placed to deliver further operational improvements. As we complete our margin recovery programme, we are focused on organic growth, new contract wins, and carefully targeted opportunities in attractive markets."
