Author Topic: NX Full Year Results for the year ended 31 December 2010  (Read 1140 times)

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NX Full Year Results for the year ended 31 December 2010
« on: March 02, 2011, 12:39:40 PM »
Full Year Results for the year ended 31 December 2010

Full Year Results for the year ended 31 December 2010
24 Feb 2011

National Express Group PLC ("National Express" or the "Group"), a leading international public transport group, operates bus and coach services across the UK, continental Europe/North Africa and North America, together with rail services in the UK.

Ahead of schedule in delivering Business Recovery

2010 was a year of successful transformation. We are ahead of plan in our Business Recovery, delivering significantly improved margins and returning to underlying revenue growth. With this sound financial footing, we have restored the dividend and we are driving forward performance, delivering value for all shareholders.

    * Normalised margin rose from 5.9% in 2009 to 9.6% in 2010
    * Normalised operating profit increased over £44m to £204.2m (2009: £159.8m)
    * Normalised profit before tax rose 38% to £160.5m (2009: £116.2m)
    * Franchise extensions secured for National Express East Anglia and c2c; potential for future value creation in Rail
    * UK Bus returned to industry average margin with operating profit up 36%
    * Over $30m annualised cost savings delivered in North America; operating profit up 44%
    * Despite challenging economic backdrop, Spain performed strongly with margin and profit growth
    * Dividend restored with a proposed final dividend payment of 6 pence per share

Financial summary         
         Normalised result
Full year ended 31 December, £m    2010    2009       
Revenue    2,125.9    2,711.1    (22)%    
Group operating profit    204.2    159.8    28%    
Share of results from associates    0.3    (0.1)    n/a    
Net finance costs    (44.0)    (43.5)    (1)%    
Profit before taxation    160.5    116.2    38%    
Operating margin    9.6%    5.9%    63%    
Net debt    610.4    657.9    7%    
Basic earnings per share (pence)*    23.6    30.5    (23)%    
Return on capital employed (pre-tax)    13.2%    10.7%    23%    
Statutory profit/(loss) for the period    62.3    (52.7)    n/a    

* decline in EPS due to impact of equity rights issue in November 2009

Dean Finch, National Express Group Chief Executive, said:

"This is a renewed company. Our much improved financial performance provides a platform to drive further growth, continue targeted investment and restore a dividend. With a clear focus on our strategy we are confident in the year ahead."

Enquiries:
National Express Group PLC
Jez Maiden, Group Finance Director    0121 460 8657
Stuart Morgan, Head of Investor Relations    0121 460 8657
Anthony Vigor, Director of Policy and External Affairs    020 7805 3806
     
Maitland    
Neil Bennett/George Hudson    020 7379 5151

 

There will be a presentation for investors and analysts at 0900 on 24 February 2011 at Bank of America Merrill Lynch, 2 King Edward Street, London EC1A 1HQ. A webcast will be available at www.nationalexpressgroup.com

Definitions

Margin: the ratio of normalised operating profit to revenue for continuing businesses.

Normalised result: Statutory result excluding profit or loss on the sale of business, exceptional profit or loss on sale of non-current assets and charges for goodwill impairment, intangible asset amortisation, exceptional items and tax relief thereon, for continuing operations. The Board believes that the normalised result gives a better indication of the underlying performance of the Group.

Underlying revenue compares the current year with the prior year on a consistent basis, after adjusting for the impact of currency, acquisitions, disposals and rail franchises no longer operated.

Return on capital employed is normalised operating profit divided by the sum of net assets and net debt.