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National Express veered further off track today as it crashed into the red with a £36.6 million half-year loss, and dumped its interim dividend to cut debt.
The bus and train giant, which is today facing a 48-hour strike by employees on the East Anglia line, made a £35.9 million profit in the same period last year.
It blamed its decline on a £20 million trading loss on the East Coast rail franchise which it is due to hand back to the Government.
MPs had suggested the line's nationalisation opened up grounds to end National Express's other rail franchises, East Anglia and c2c. But the firm rebuked the claims today and said legal advice left it “confident” that the move would not be allowed.
It also said it had started searching for a new chief executive, following the departure of Richard Bowker earlier this month.
Meanwhile, bosses said axing the divi was needed to help National Express stay on track with banking covenants.
Although it reduced debt by £200 million to £977.5 million in the first six months of this year, it still needs to refinance £461 million of debt by September 2010.
The company is currently the subject of a takeover bid from CVC, the private equity group, and the Spanish Cosmen family. Arch-rival Stagecoach has also shown interest in buying the firm.
Shares fell 1¾p to 339p.
