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National Express profits slump for year of East Coast debacle
25 Feb 2010National Express today ended a bad year, in which it lost the East Coast main line rail franchise, by reporting a 43 per cent slump in profits.
The bus and rail firm, which operates the Stansted Express and c2c services into Fenchurch Street, said full-year pre-tax profit fell to £116.2 million from £202.4 million. It predicted another tough year.
National Express, which appointed a new chief executive in Dean Finch this month, said it was focused on delivering margin improvement in 2010 through cost reduction.
“With significant scope to improve our business, especially in UK Bus and North America, while building on our successes in Spain and UK Coach, we will drive forward our performance and deliver value for shareholders,” said its chairman, John Devaney.
In December National Express completed a £360 million rights issue to cut debt, and it has effectively been barred from re-bidding for its c2c and East Anglia rail franchises next year.
