National Express Group (NEG) has reversed its recommendation to pay a dividend to shareholders for Q1 2020 because of the coronavirus COVID-19 pandemic, despite a relatively positive trading update for the period.
For the first two months of 2020 NEG delivered year-on-year revenue growth of 17% across its global operations.
For the whole quarter that figure was 8.9%. The group’s half-year cashflow projection has also improved since 19 March, it adds.
In the UK, revenue growth in bus operations for Q1 2020 was 7.6%. The UK coach business saw revenue decrease by 11.6%. NEG had already confirmed that the UK scheduled coach operation had been particularly hit by coronavirus COVID-19, leading to its suspension.
In the West Midlands, 46% of National Express operations are running after agreement with Transport for West Midlands on a service level during the coronavirus COVID-19 pandemic. A small number of private hire contracts, principally for local authorities, the MoD and the NHS, continue.
Around half of NEG’s UK workforce has been furloughed, the group says. All capital expenditure in the UK is “on hold”.
