Management confirm they expect company to "at least" deliver in-line full-year profit targets
Companies: Mobico Group PLC
The
UK's largest coach and bus specialist National Express Group has reported strong trading for Q3,
saying revenue is expected to be around 9% greater than the previous
period, with profit up 5%, and confirming that it expected to "at
least" deliver its targets for profit, cash, and gearing for the full-year.
Performance in the quarter
was driven by particularly strong results from the groups' overseas businesses,
which were boosted by Brexit-induced forex movements on overseas earnings:
"Year to date, like-for-like Group operating profit is 5% higher on a constant currency basis and up 12% on a reported basis, boosted by foreign currency movements on overseas earnings and after a significant increase in the c2c franchise premium. The Group is on course to at least deliver its targets for profit, cash flow and gearing for the year."
Group revenue is up 11% in
2016 (constant currency) and up 17% on a reported basis, which was supported by
6% passenger growth. Group PBT is up 9% (constant currency) and up 15% on a
reported basis.
Management expect the
company to generate at least £100m of free cash flow for the year and close the
year with gearing within its 2-2.5x net debt to EBITDA range. The group also
intends to refinance its £350m bond shortly, hoping to achieve significant
savings in interest costs.
Dean Finch, Chief
Executive, said the company had continued to deliver good growth, generate
strong cash flow and open new market opportunities:
"We will stick to our fundamental principles of safe and punctual operations at affordable prices with particular emphasis on controlling costs to generate cash and keep fares low.
The combination of our relatively resilient UK performance together with the strong growth we are seeing from our international operations enables us to selectively invest in growth opportunities subject to our strict financial criteria and continue to deliver attractive and sustainable returns to shareholders."
