Mobico Group PLC (LSE:MCG) reported first-quarter results revealing that growth from its European transport division offset further decline in the UK.
The group formerly known as National Express saw revenue rise 9% in the first three months of the year.
This was driven by strong performance at ALSA, its European arm that primarily operates in Spain, where sales rose 13% or 16% on a constant currency basis thanks to robust demand in Spanish long-haul and regional services.
North American sales grew 13%, with the divestment of the US School Bus business to I Squared Capital said to remain "on track" to complete in the third quarter, expected to generate $365-385 million in net proceeds.
The UK saw a 2% revenue decline as its continues a "large-scale, complex turnaround", while Germany fell 3% due to driver shortages that the company said is a sector-wide issue.
New executive chair Phil White, who took on a more expanded role on an interim basis when CEO Ignacio Garat stepped down earlier this year, said his first months at the company have shown him that "considerable value and momentum exists across the group".
He pointed to the 9% revenue growth in the first quarter as evidence of continuing growth in demand for our services, particularly in ALSA"
"Our priority remains in strengthening our balance sheet and accelerating the pace of operational and financial improvement," White added.