National Express Group PLC (LSE:NEX) said it expects 2022 revenue to be around £2.7bn, close to pre-pandemic levels and intends to re-establish a dividend.
The mass transit provider reiterated it expects to grow revenues by at least £1bn from 2022 to 2027 and achieve its 9% target average margin. It also predicted it will generate more than £100mln of EBIT growth during the period.
The group expects 2023 margins to improve further from 2022, but added profitability will lag revenue recovery, resulting in margins below the target 2022-2027 average.
In a trading update, the coach and bus services provider said UK revenue is performing in line with expectations, with Bus patronage at about 85% of pre-pandemic levels and Coach revenue recovering faster than expected.
Revenue at its Spanish unit ALSA is already 15% above pre-pandemic levels.
Currently, airport volumes are around two thirds of pre-pandemic levels.
New contracts have driven the company's German rail revenue to nearly four times its pre-pandemic levels.
The company said its initial tranche of zero emission vehicles in UK Bus are outperforming expectations driving both cost efficiencies and revenue growth.
Shares were flat at 104.80p.