National Express slumps into red after rail fiasco

By Graham Ruddick, City Reporter Published: 7:16PM GMT twenty-five February 2010

National Express Group

The ride organisation on Thursday reported a pre-tax loss for 2009 of �83.5m, compared to a �110m distinction in 2008, with revenues descending 2pc to �2.71bn.

National Express paid �1.4bn in 2007 to run the East Coast authorization but the understanding was formed on annual newcomer income expansion of 10pc and, as revenues essentially declined 2pc, the line fell in to the red. The association reported an handling loss of �26.3m in the initial half of last year for the line and requisitioned a �64.8m well-developed assign for the second half after controversially pulling out of the authorization and sparking a row with the Government.

National Express: key contribution about the troubles Bowker?s �1.4bn bid was a complicated weight on National Express Rail passengers face retrogression ride increases Railways should be open to blurb access, similar to alternative ride networks A outrageous check is about to land on Britains doorstep

Ray O"Toole, the arch handling officer, pronounced National Express had battled by a "series of key challenges" in 2009 but is right away "in a most stronger figure than a year ago". As well as giving up the East Coast line, the association lost the arch executive, fought off a takeover conflict from the largest shareholder, and was forced to accelerate the finance management by a �375m rights issue.

Outside of the rail division, National Express posted jot down handling increase for the UK manager multiplication of �34.3m as business sought cheaper alternatives of travel, but increase at the train arm, that is predominately formed in the West Midlands, halved from �40m to �20.8m among flourishing stagnation in Birmingham and a climb in fuel costs.

In the annual results, that reliable the association will not compensate a dividend, National Express pronounced it will work the East Anglia and c2c rail franchises until stop in 2011, when it will afterwards "focus the destiny expansion on the train and manager operation". Mr O"Toole pronounced the association was "open-minded" about either it would re-enter rail with "a resourceful and delicately risk-assessed involvement".

He pronounced 2010 betrothed to be "another severe year", but the association should good from reduce fuel costs.