National Express remains in high gear as US prices rise

National Express said strong momentum has continued into 2017 and enjoyed significant foreign exchange tailwinds in the first months of the year.

The FTSE 250 group said it remained on target to deliver its profit expectation, free cash flow and leverage targets for the full year.

Revenue from continuing operations between 1 January and the end of April increased 15.8% on a reported basis, up 5.4% at constant currencies.

As well as forex, sales benefited from organic growth and a number of bolt-on acquisitions made last year.

Profit before tax was said to be up year-on-year on a constant currency basis.

UK coach delivered revenue growth of 2.7% during the period and saw an increase in 'patronage' over the Easter break of 4%.

UK bus commercial revenue declined by 0.5% as passenger numbers decreased 0.7%. However for the last six weeks, commercial revenue were flat on last year as passenger numbers rose 1%.

North America grew revenue 5.8% in constant currency, boosted by the recent acquisitions and existing contracts enjoying a high retention rate of 96% as a much smaller proportion of contracts came up for renewal.

Where contracts have been renegotiated or renewed the company managed to secure an average price increase of 3.8%, up 2.2% across the entire portfolio.

Spanish business ALSA grew revenue 8.4% in constant currency, with organic growth also enhanced by acquisitions.

Chief executive Dean Finch said National Express' diversified portfolio was providing "broad-based growth that is also providing additional opportunities for further expansion".

On potential investment in future expansion he added: "These opportunities will continue to be sought in a disciplined manner and we will only pursue them if they meet our strict financial criteria. We remain on track to meet our full year profit and cash flow expectations."