National Express Group PLC (LSE:NEX) has reported first-quarter revenue growth of 17%, in line with expectations, despite the impact of bus strikes in the UK.
In a trading update, the bus and rail operator said revenue in the period rose by £153.9mln to £774.4mln, an increase of 25%..
Ignacio Garat, National Express group chief executive, commented: "I am pleased to report another quarter of progress at National Express with group revenues in-line with expectations, albeit affected by the bus driver strike in the UK, and recognising that the most significant trading periods for our US School Bus and UK and Spanish coach operations still lie ahead.”
The firm highlighted continuing strong performance from ALSA, its Spanish subsidiary, particularly in Long Haul and Morocco and contract wins in North America in new target cities and segments.
National Express expects average price rises of 13% in US School Bus contracts as they expire and reported a strong recovery in UK Coach and German Rail, although UK Bus was affected by a six-day bus driver strike.
The company is implementing a productivity improvement and cost-reduction programme in response to ongoing industry and economic uncertainties but stressed front-line roles would not be cut.
A bond refinancing in November this year is expected to increase incremental annualised interest costs by around £12mln.