Signs of recovery for National Express as savings take effect
Transport operator National Express said that cost reductions had helped it return to the black in the first half of 2021 despite continuing Covid restrictions.
Although revenue was slightly down on last year, the firm said that underlying operating profit came in at £22.9 million for the period, up from a £30.6 million loss in the same half in 2020.
The Birmingham-based group, which runs bus services across the region as well as its longer national routes, said that this was largely due to the £100 million in cost savings set out in last year’s full year results.
UK revenues declined by 8.9 per cent in the period to £172.8 million.
The UK business delivered an operating loss in the first half of the year of £19.9 million although this was at a much-reduced level compared to the second half of 2020.
That came after a year in which National Express saw the imposition of coronavirus restrictions batter demand for public transport.
Although the bus company said that its focus was on returning to pre-Covid levels of operation, it added that it saw “significant opportunities” across all its markets.
It cited the new £3 billion National Bus Strategy in the UK as a potential areas for further growth.
Group chief executive Ignacio Garat said: "It is pleasing to see the continued improving performance trajectory across the group over the first half of the year, despite ongoing Covid restrictions.
"Throughout this period, we have remained focused on the health and wellbeing of our colleagues and passengers, working in partnership with governments and customers around our markets to deliver critical public transport services.
"As restrictions lift, we look forward to strengthening those relationships further as an ever more critical part of the solution to tackling climate change, with modal shift from cars to public transport leading the way to cleaner, greener and less congested cities.
"We are completing work on the business review and it is clear that we have significant profitable growth opportunities ahead. I look forward to communicating our findings and priorities in the autumn.
"We remain focused on managing what we can control and I am confident that as restrictions are lifted across each of our markets, we will see a strong recovery in both the demand for our services and in our financial results."
