Author Topic: National Express posts £2m rise in profits  (Read 1080 times)

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National Express posts £2m rise in profits
« on: July 27, 2012, 03:55:59 PM »
Dundee bus operator National Express posts £2m rise in profits

The company running Dundee's city buses increased revenues and operating margins during the first six months of the year.

National Express said bus operations, which also include a massive public transport operation in the West Midlands, boosted profits across the UK network by £2 million.

Revenues climbed to £133.5m in the six months to the end of June, up from £131.6m in the same period last year. Operating profit rose from £15.2m to £17.2m.

The company, which employs around 360 people in Dundee, said investment and cost efficiency had combined ''to build a stronger business'', while the impact of the UK Government's austerity measures had been mitigated successfully.

It said steps like on-board driver monitoring reduced costs and improved driving style, while lean engineering operations had been rolled out across the network.

Investment — like bringing in new buses, including hybrid vehicles — was helping to encourage passenger travel, and had contributed to both improved customer feedback scores and reduced maintenance costs.

A total of £30m of capital funding is expected to be invested in the fleet this year.

Passenger numbers on National Express Dundee's fleet of 130 buses have risen thanks to the tough economic times but bosses are known to be frustrated at service delays caused by the effects of roadworks on a number of the city's arterial routes.

Group-wide, operating profit fell by 10% for the period to £105m, though the result was adversely impacted by the handing back of an East Anglian rail franchise.

Total revenues fell 17% to £934m but non-rail income climbed 3% to £808m.

Overall non-rail profits fell back by £500,000, despite the UK performance, stable profits in recession-hit Spain and growth and acquisitions in the US.

The firm also announced that chairman John Devaney was preparing to step down early next year to further his other business interests.

Mr Devaney said that he was ''proud'' to have been part of a team which had transformed the company into a strong business.