National Express Group PLC (LSE:NEX) shares drove higher on Thursday after the bus and rail operator reported better-than-expected full-year revenue and restored the dividend.
The FTSE 250-listed firm said group revenue rose 29% in the 12 months to 31 December 2022 to £2.81bn, ahead of City forecasts of £2.77bn ,while underlying pre-tax profit soared to £145.9mln from £39.7mln.
Earnings per share of 15.0p compared to 0.2p in 2021 and the group restored the dividend with a 5p payout.
But on a statutory reporting basis, loss before tax totalled £209.9mln impacted by a £261mln non-cash impairment of goodwill in ALSA, the group's Spanish business, arising from a rise in discount rates.
Chief executive Ignacio Garat said: “Our expectations for 2023 are unchanged, and we have clear and robust actions in place to mitigate macro-economic headwinds and to reduce costs if necessary.”
“The continued and expanding demand for public transport over the coming years will bring growth opportunities and our Evolve strategy positions us well to capitalise on them."
Peel Hunt said “the 2022 results were slightly better than we expected and the 5p dividend was in line”.
“The outlook remains unchanged, which will be a relief, but the West Midlands bus strike ballot closes today and the risk of strikes hangs over the stock.”
Shares in National Express rose 13% in early exchanges in London on Thursday to 139.85p.