National Express Group shares ended the week strongly after the company reported a tripling of profits in 2022 compared to the previous year, amid a 23% surge in passenger journeys.
National Express reported an underlying pre-tax profit of £145.9 million – up 367% from £39.7 million in 2021. Boosted by rail strikes, its coach sector fared particularly well last year, the Group revealing a doubling of passenger numbers.
Shares in the company rose as much as 16% during the opening hours of Thursday to 143.70p and held strong on Friday to close at 142.49p.
Overall revenues rose to £2.81 billion, which was a 29.4% rise on last year, as the company also benefited from positive developments in its overseas arms, such as subsidiary ALSA in Spain, Morocco, Switzerland and Portugal.
Ignacio Garat, Group Chief Executive of National Express says: “I am pleased with the significant progress we made in 2022, which saw strong growth in passenger volumes resulting in a 29% increase in Group revenue; the doubling of revenue in our UK coach business and ALSA’s revenue exceeding €1bn for the first time. After a first quarter that was impacted by Omicron, the resilience and agility of our teams amid a uniquely challenging operating environment meant we saw momentum build across our businesses through the year and continue into 2023.”
He notes ongoing challenges such as inflation but sees further growth likely due to passenger numbers, new contracts and the recovery of the US school bus market.
“Our expectations for 2023 are unchanged, and we have clear and robust actions in place to mitigate macro-economic headwinds and to reduce costs if necessary,” he adds. “The continued and expanding demand for public transport over the coming years will bring growth opportunities and our Evolve strategy positions us well to capitalise on them.”
In terms of scheduled coach services, National Express enjoyed an increase in passenger numbers of 150% year on year. Bus patronage grew by 39% over the same period, aided by a fares freeze at pre-pandemic rates, which was made possible by the Bus Service Improvement Plan. The company added 900 new drivers during the year, which allowed route reinstatement to take place. The company also cited 35 new contracts and a network relaunch in the UK, which saved 6% per passenger mile.
Last summer, National Express UK Coach Managing Director Chris Hardy said the sector had bounced back strongly after the pandemic measures had an impact on travel habits. In January, the company launched Touromo to develop holiday and day trip market opportunities.
