(Alliance News) - National Express Group PLC's swung to a bruising loss during a first-half that was focused on limiting the damage from Covid-19, which has battered the public transport sector.
National Express shares were 13% lower at 153.02 pence each in London on Thursday morning, the worst performing mid-cap stock. The company has lost two thirds of its market value since the year began.
The bus, coach and train operator swung to a GBP122.2 million pretax loss in the six months to June 30 from a GBP88.4 million profit a year earlier. Revenue dropped 23% to GBP1.03 billion from GBP1.34 billion.
The year started "extremely well", National Expess said, with revenue in January and February up 17% at constant currency.
"Covid-19 then had an immediate and unprecedented impact on all of our businesses from March onwards. We took swift and decisive action to protect the safety of customers and colleagues and the group's financial position. This included working very closely with customers and authorities to reduce service and negotiate extra support and payments. While patronage fell 80% during lockdown, mileage was reduced by nearly 80% and we still secured 50% of expected revenue," the company said.
National Express furloughed or temporarily laid off about 40,000 of its workforce, slashed capital expenditure by GBP100 million, and removed GBP300 million of operating costs in the second quarter.
These measures helped National Express stay "Ebitda positive". Earnings before interest, tax, depreciation and amortisation came in at GBP88.3 million, down 64% annually.
Since lockdowns have eased, National Express has seen "encouraging early signs of demand returning".
"Activity remains, nonetheless, at much suppressed levels. In every market we focus on proactive customer communication and service flexibility to maintain contracted payments and meet demand efficiently," the company added.
"We do not know when demand will return to pre-pandemic levels."
There was no interim dividend, as previously guided, following a 5.16p payout a year ago.
There is also no annual profit guidance, due to Covid-19 uncertainty.
By Eric Cunha; ericcunha@alliancenews.com
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