National Express profits up as demand recovers from pandemic

National Express said group revenue was up 11% to £2.17bn, while group EBITDA surged 60.8% to £300.0m. The group reported an underlying pre-tax profit of £39.7m, a marked improvement when compared to the prior year's underlying pre-tax loss of £106.1m, and underlying basic earnings per share of 0.01p, up from 2020's loss of 14.6p.

However, on a statutory basis, group operating losses were narrowed from £381.4m to £36.2m and pre-tax losses were reduced from £444.7m to £84.9m.

National Express stated its improved performance came as a result of a "significant rebound" in underlying operating margins in North America, up at 9%, as well as in ALSA and German Rail, at 8% and 3%, respectively.

Underlying operating costs were up 3.8% despite strong revenue growth and inflation, reflecting the benefits of its cost reduction programmes.

National Express added that it generated £123.4m of free cash flow in the year, an improvement of £319.0m over the prior year, and that it also delivered a "significant improvement" in gearing to 3.6x from 6.6x