(Sharecast News) - Bus operator National Express forecast a small positive cashflow in the coming months as demand for its services fell across the world due to the coronavirus.
The group said its UK coach business had seen a significant decline in passenger numbers, with a 70% slump in Spain after a state of emergency was declared, although in the US a large number of customers were still paying their bills partially or in full as states order districts to honour their agreements for school bus services.
National Express operates bus, coach, train and tram services in Britain and the US, where it operates the iconic yellow school buses on the school run. It also runs transport services in other locations, including Spain, Canada, Germany and Morocco.
"As a highly diversified business, National Express Group is currently experiencing different impacts from Covid-19 across its portfolio. While there has been a significant decline in passenger numbers in recent weeks, globally National Express Group has taken decisive action and has contractual protections in place to help withstand the downturn," the company said on Thursday.
The company added that it would "continue to reflect" on its plan to pay a final dividend of 11.19p a share "recognising how important the dividend is to our shareholders" and would make a final decision ahead of its annual meeting on May 7.
National Express said it had committed fixed borrowing facilities of more than ?1.3bn and would retain this level for at least the next 18 months. Current undrawn committed facilities total around ?500m.
"In addition, the group is in advanced discussions with our banking group to secure additional short-term facilities as further security should market conditions worsen. The UK government's announcement of secured loan guarantees provides further assistance here. The Spanish Government has also indicated it is likely to provide similar support," it said.
The Group was trading strongly in the first two months of the year, with group revenue up 17% compared to 2019, driven by Spain's ALSA up 24%, North America up 15% and the UK up 5%.
In the UK commercial bus revenue, which accounts for 70% of the business' revenue, had so far seen a decline of around 20%.
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