National Express revenues jump 30% thanks to pent-up travel demand
National Express revenue up 30% on pent-up travel demand, bringing it back in line with pre-pandemic levels
- The Birmingham-based company operates in eight countries
- March sales were higher compared to the same month in 2019
- Future plans include the possibility of an urban bus project in Dubai
National Express says revenues have returned to pre-pandemic levels thanks to pent-up demand for travel in the UK and Spain.
In a trade update, the Birmingham-based haulage company — which operates in eight countries in Europe and North America — said sales were up 30 percent in the last quarter.
Based on the results, the group says it is confident in its short and long-term outlook, “including 2022 sales in line with 2019 levels, and at least £1.25 billion in free cash flow between 2022 and 2027”.
British transport company National Express has revealed its revenues have returned to pre-Covid levels thanks to pent-up demand for travel in the UK and Spain
The group noted that sales in March were higher compared to the same month in 2019.
It highlighted a strong recovery of its airport routes in the UK and Germany, with passenger demand growing 40 percent monthly in March.
The company says it continues to see “good growth opportunities”, with “a number of bids on North American Transit and Shuttle”, a new contract in Portugal to start in June and a contract for an urban bus project in Dubai on the cards.
Ignacio Garat, chief executive, said: ‘The cost of living is starting to bite for many people, and our bus services offer an attractive low-cost alternative form of travel.’
Garat also highlighted the company’s commitment to green travel and the company has secured funding for 124 hydrogen buses.
Last month shareholder spirits were dampened after the failed bid to buy Stagecoach, Britain’s largest bus and coach operator.
Stagecoach had agreed to National Express’s all-share offer in December, but turned around and instead backed a bid of 105 pence per share from German investment fund DWS.
Garat said on the matter Tuesday: ‘We continue to believe that our proposed combination with Stagecoach, with at least £45 million in run-rate synergies, represents a superior opportunity for value creation for the DWS offering.
“However, we will remain disciplined in assessing our options going forward.”
He concluded: ‘Looking ahead, with an encouraging start to 2022, we expect a further strong recovery in demand during the year, and are confident that we will deliver further performance improvements during the year.’
National Express Shares rose 9.51 percent to 246.4 pence in morning trading.