(Alliance News) - National Express Group PLC on Thursday reported its highest revenue in over a decade, as demand for public transport climbs post-pandemic.
Shares in the Perth, Scotland-based transport provider were up 5.5% to 188.90 pence each in London on Thursday around midday.
In the six months to June 30, revenue climbed 34% GBP1.32 billion from GBP992.4 million last year. Pretax profit also swung to GBP20.5 million from a loss of GBP50.2 million.
National Express also noted that the second quarter was stronger than the first, with momentum building across the business.
The company explained that demand for public transport is rebounding post-pandemic, with the number of passenger journey climbing 29% in the first half of the year. Notably, in the UK demand for its coaches have surged as airports have reopened and intercity travel has been restored.
National Express also said that it has won 16 new contracts in the period, which will contribute over GBP150 million in revenue over the course of the contract lifetimes.
Whilst National Express said that it would not declare an interim dividend, it is anticipating reinstating a full year dividend.
Looking ahead, National Express expects to perform in line with full year guidance as it continues to benefit from recent contract wins and its growing pipeline. Further, over the next 18 months it said it has around EUR300 million in bidding opportunities.
It also anticipates further growth in the second half of the year, with continuing recovery in demand for long haul journeys and consumers switching to public transport during the cost of living crisis.
However, it also continues to monitor significant challenges ahead, notably cost inflation and driver shortages. In the US, where the company is experiencing a significant shortage of school bus drivers, National Express has increased wages by 12% to drive recruitment.
Chief Executive Officer Ignacio Garat said: "The path ahead will not be without challenges. We believe, however, that we are well positioned in an inflationary environment; resilient to slowing economic growth; and are taking all the steps we can to mitigate the industry-wide shortage of school bus drivers in the US."
By Sophie Rose; sophierose@alliancenews.com
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