(Alliance News) - National Express Group PLC on Thursday posted a narrowed annual loss and said it is "considering its options" after being spurned by Stagecoach Group PLC.
Shares in the bus, coach and train operator were 1.7% higher at 246.00 pence each in London on Thursday morning.
A day after seeing its merger with smaller peer Stagecoach collapse, National Express reported a greatly reduced annual loss.
In 2021, its pretax loss was slashed to GBP84.9 million from GBP444.7 million in 2020. Revenue increased 11% to GBP2.17 billion from GBP1.96 billion.
The transport firm recorded GBP123.4 million in free cash flow in 2021, swinging from GBP196.0 million of outflow in 2020.
National Express noted it has a current pipeline of GBP1.5 billion in revenue, and said it plans to reinstate its dividend with a full-year payout for 2022.
The company did not pay a dividend in 2020 and it withdrew its final 2019 payout, in the wake of the emergence of the Covid-19 pandemic.
"Looking ahead, reflecting the improving financial performance of the group and the outlook for profit and cash for the year ahead, the Board intends to reinstate a dividend in respect of the full year 2022, at least 2 times covered. We anticipate paying the entire dividend in respect of FY 2022 based on, and following delivery of, the full year results; reverting to a customary split between interim and final dividends for subsequent years," the company said.
Turning to the Stagecoach deal, National Express said it is "considering its options and will update the market in due course". On Wednesday, Stagecoach accepted a new cash takeover offer, and the board no longer recommends the all-share merger previously agreed with National Express.
Stagecoach on Wednesday accepted a new cash takeover offer and no longer recommends the all-share merger previously agreed with National Express.
The Perth, Scotland-based bus and train operator on Wednesday said its directors unanimously recommend a new GBP594.9 million cash offer from Pan-European Infrastructure III SCSp, an infrastructure fund managed and advised by DWS Infrastructure.
Stagecoach shares down 0.2% at 104.84p early Thursday, though they had jumped 36% on Wednesday.
Looking ahead, National Express forecasts a recovery in demand over the year ahead.
By Eric Cunha; ericcunha@alliancenews.com
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