Insider Media Limited

An increase in commuter passengers and airport link-ups has helped hike up Birmingham coach operator National Express's revenues. The transport company told the Stock Exchange this morning it expected its coach division's turnover to have grown 5 per cent in 2011.

In a pre-close update for the year ending 31 December, National Express said it remained on target to produce revenue and profit growth in "every one" of its divisions.

Turnover in the core National Express coach network is expected to increase by more than 5 per cent in 2011, with airport, long-haul and London commuter services performing "particularly well", said the operator.

Additional new services, including new services linking Leeds, Manchester and Liverpool airports, were also helping to boost sales.

Rail division revenues are expected to grow by 6 per cent in 2011, said National Express. In a year in which petrol prices have soared for commuters across the UK, passenger volumes were "strong" in 2011.

The company added that it was now "well positioned" to progress towards pre-qualification for the rail refranchising programme expected in 2012.

Passenger numbers in National Express's UK bus division are set to have grown by 4 per cent over the year.

Over the 12 months, the company said it expects to have introduced about 250 new buses, replacing 15 per cent of its fleet.

Dean Finch, group chief executive, said: "National Express is finishing 2011 in excellent shape. We are growing revenue and profit in all five of our divisions. We continue to invest in new fleet and offer exceptional value to our customers, enhancing the quality of our services at prices our passengers can afford.

"As recent passenger growth has shown, our customers value our competitive pricing during this period of economic uncertainty. This strong foundation, coupled with a clear cost focus and the operational flexibility of our business, leaves us well positioned to pursue new opportunities to deliver value to shareholders in the future."

As well as its UK divisions, National Express also operates in North America and Spain. Finch added that the company "continues to selectively to explore new opportunities within our target markets", in terms of growing its overseas divisions.

In North America, National Express said it expects to double its 2009 operating profit level. Revenue growth for the full year is expected to be 8 per cent, it added.

The company's previously announced acquisition of Petermann Partners Inc, is progressing through regulatory clearance with an expected completion date in late January 2012.

Transport revenue growth in Spain is expected to be 5 per cent in 2011, with trading still at "robust" levels after the busy summer season.