National Express Group has announced that revenues, profits and margins were up in every division and a growing dividend underpinned by a strong and sustainable free cash flow, as their Full Year Results for the year ended 31st December 2015 were revealed. 

Citing their strategic focus on consistently delivering operational excellence to drive returns and generate new business opportunities, National Express has continued to secure good growth and market expansion in existing businesses. 

At the same time, the Group's successful entry into new markets has demonstrated significant future growth opportunities which complement the progress made in previously established markets.

The Group's focus on operational excellence continued to deliver results:

• An excellent first full year of the new c2c franchise, including being named Passenger Operator of the Year and seeing record passenger numbers, that drove revenue growth of 9.5%

• A five-year “Bus Alliance” secured with local authorities in the West Midlands, a first for the UK. This award winning and industry-leading approach to partnership has helped drive 10.3% growth in operating profit

• Successful North American School Bus bid season, with an average price rise of 2.8% across all contracts, off-setting wage inflation. Further progress on new acquisitions, with five made in the year

• UK Coach’s further development of sophisticated marketing and revenue management, coupled with new strategic partnerships, saw operating profit increase by 15.4%

• A record year of passenger numbers in ALSA, with the Spanish revenue management system and further significant growth in Morocco both helping operating profit increase by 5.8% on a constant currency basis

National Express' focus is driving strong returns and free cash flow:

• Free cash flow of £111 million, £11 million ahead of target

• Net debt increased by £81.2 million to £745.5 million, reflecting £106 million spent on acquisitions and growth capex – all of which are accretive within 12 months

• Full year proposed dividend of 11.33 pence, up 10% year-on-year

• Growth in statutory profit before tax of 87% and statutory profit after tax of 80% with no exceptional costs in 2015

• ROCE improved from 10.7% to 11.7%

The Group's reputation for excellence is also generating new growth:

• Two successful launches of significant new services in new markets during the year:
  1: German rail services, with the RME contract launched in December
  2: Bahrain bus contract launched in February 2015

• €1 billion Rhine Ruhr Express (RRX) contract won during 2015, taking secured German rail revenues to €2.6 billion with a further appeal on Nuremberg due to conclude shortly

• ALSA won the Imserso contract for pensioner travel and launched services in a fourth Moroccan city, Khouribga

• Bid for East Anglia rail franchise submitted during December 2015, with a result expected in July

• All divisions now have excellence accreditations and plans to match c2c’s five-star EFQM rating

• Our reputation for excellence is helping to drive further market expansion:
  + We are currently working on a further three bids in German rail, worth €3 billion in total revenue
  + We are developing a strong bid for the Manchester Metrolink tram system, with submission in early May
  + We have been shortlisted for other bus contract opportunities in Europe and the Middle East

Dean Finch, Chief Executive, National Express Group  said: “This strong set of results demonstrates that our focus on operational excellence is generating excellent returns for our shareholders and customers. 

"With our German rail and Bahrain bus contracts, we have successfully launched services in two new markets during the year. I am pleased that every division has increased revenue, helping to drive overall group profit growth and another strong free cash flow performance. 

"Our commitment to our customers and safety has also been recognised in a record year of industry awards.

"With this year’s strong cash performance and our confident outlook, and in-line with our previous commitment to now include rail profits in our dividend policy, we propose to raise the full year dividend by 10%. 

"We continue to draw on our international reputation for operational excellence to expand new market opportunities. We have an active pipeline of bids within Europe and the Middle East that will continue to deliver new growth opportunities.”