National Express revenues hit ten-year high in H1

Public transport operator National Express said on Thursday that revenues and earnings had improved over the six months ended 30 June, driven by continued momentum across the business in Q2.

National Express reported a 33.6% increase in group revenue to £1.32bn, the highest in over a decade, a 54.3% improvement in group underlying earnings to £197.8m, and a 295% surge in underlying operating profits to £90.5m.

Group underlying pre-tax profits shot up from £100,000 in 2021 to £68.7m at the same time twelve months later, while the company also bounced back from a loss per share of 2.1p a year ago to earnings per share of 6.2p in the first half of 2022.

National Express also highlighted its "growing pipeline", with £2.1bn of bidding and inorganic growth opportunities, and said it had secured 16 new contracts in the period, predominantly in North America, totalling over £150.0m in revenues over the lives of the contracts.

The FTSE 250-listed group added that its "strong" first-half performance, recent contract wins, and growing pipeline provided it with confidence in reaching full-year guidance and beyond, although it did note that challenges stemming from driver shortages in its North American school bus operations remained.

Chief executive Ignacio Garat said: "I am pleased to see momentum building across the group, with strong growth in revenue, profit, and cash in the first half.

"The path ahead will not be without challenges. We believe, however, that we are well positioned in an inflationary environment; resilient to slowing economic growth; and are taking all the steps we can to mitigate the industry-wide shortage of school bus drivers in the US. Whilst mindful of these challenges we maintain our full-year guidance and continue to anticipate reinstating a full-year dividend in respect of FY 2022."

As of 0915 BST, National Express shares were up 9,83% at 196.70p.

Reporting by Iain Gilbert at Sharecast.com