Business
Pre Close Trading Statement
Pre Close Trading Statement.
About this update from Mobico Group Plc
[{"type":"text","content":"\n RNS Number : 4471E National Express Group PLC 21 December 2009 \n \nNational Express Group PLC\n\nPre Close Statement\n\n\nNational Express Group PLC (\"National Express\" or \"the Group\"), the international public transport operator, today releases a pre-close trading update ahead of the year ending 31 December 2009.\n\nSummary\n\nTrading has continued in line with the trends reported in the third quarter Interim Management Statement on 22 October 2009, with full year profit expected to be consistent with the previous outlook.\n\nOverall, the underlying revenue* trend has stabilised in the fourth quarter, in line with the previously reported rate. Both the UK and Spain continue to deliver a strong operating performance, with cost efficiencies offsetting areas of revenue weakness. Action in North America will start to address continued underperformance in operational cost management, while revenue has declined as expected on previous lower contract renewals.\n\nDuring the fourth quarter, the Group has successfully delivered its key objectives:\n\n\n\n\n\n\n\n\n\n\n\n\nWe have successfully completed a strongly supported rights issue to achieve a more robust capital structure and significantly reduce debt to an appropriate level;\n\n\n\n\n\n\n\n\n\n\n\nWe have resolved our outstanding rail issues, by completing the exit from the loss-making East Coast franchise in November 2009 and with the UK government indicating that the Group will continue to operate its remaining two rail franchises to their normal termination dates in 2011**;\n\n\n\n\n\n\n\n\n\n\n\nWe have appointed Dean Finch as Group Chief Executive, to focus on delivering our future strategy; driving cost efficiency, maximising cash generation and selectively growing the business where value is enhanced.\n\n\n\n\n\nThese developments have built on our earlier success, with annualised cost savings of £50 million secured in 2009 and strong organic cash generation reducing underlying debt.\n\nPerformance\n\nUK Coach has returned to underlying revenue growth, of 4%, in the fourth quarter, with successful marketing and yield management offering even better value for our customers. Our new Birmingham coach station has opened for business, delivering a major improvement in customer experience. UK Bus underlying revenue growth has remained resilient at 2% year to date, ...