Shares in coach operator National Express (NEX) have risen after it recorded revenue and profit growth in all areas of its business.
In a trading update for the three months to 30 September the firm said group revenue was up 14.5% on the same period the previous year, with operating profit up 14.3%, without giving any figures.
The update marks an acceleration in top-line growth from the half-year stage when revenues were up 10.5% to £1.3bn, enough to lift the shares by 1.2% to 457p.
The company’s performance was boosted by a number of contract wins and acquisitions.
AMERICAN ACQUISITION DRIVES GROWTH
Most notably, its acquisition of a 60% stake in American employee shuttle business WeDriveU helped drive growth.
Revenue in its North American division jumped 20.6%, the majority of which was driven by the WeDriveU acquisition.
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UK revenues grew 3.2% despite a strong comparative period last year, while its Spanish and Moroccan division saw revenues up 8.5% driven mostly by organic growth.
National Express added that recent contract wins, renewals and ‘mobilisations’ in the quarter will help it ‘sustain momentum’ in the medium term.
MOROCCO PRESENCE DOUBLED
The biggest new business win was a €1bn, 700-bus contract in Casablanca, Morocco, for up to 15 years.
Having doubled its presence in Morocco with a contract in the capital Rabat, which started in August, the Casablanca deal will nearly double its presence in the country again.
National Express chief executive Dean Finch said the outlook for the company ‘remains positive’ following the results and given its ability to win and retain contracts.
He added, ‘We will continue to focus on operational excellence as the foundation of our strategy to drive growing shareholder returns and maintain profit growth in the coming years.’
