British transport group National Express announced today that first-half revenues have remained in line with expectations, growing by seven per cent.
The bus, coach and rail service operator said that it had seen growth across all five divisions and is on course to deliver between £125m and £150m of free cash flow in 2013 and 2014.
The company said it continued to make strong progress in its three core areas of focus: organic growth and operational excellence, cash generation and business development.
Revenues grew in UK Bus, commercial and concession while in UK Coach, lower pricing, alongside new services, drove volume growth. In Spain, fare increases and new contracts helped support the business through austerity while North America School Bus is driving an improved return on capital.
National Express said its contract pipeline is developing well, with the potential for meaningful earnings enhancement in the medium term.
"I am pleased with our revenue improvement across the business, reflecting the attractive value and quality service we offer our customers," said CEO Dean Finch in a statement.
"I believe that the combination of organic growth and operational excellence, cash generation and new international contract opportunities will drive returns for National Express and our shareholders," Finch added.
National Express continues to target a gearing of two times EBITDA by the end of 2014 and to drive returns for shareholders. It said this was supported by a dividend policy prudently covered by non-rail earnings.
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