National Express loses 1m pensioners

Keeping nearly all its US school bus contracts and winning 26 new ones increased underlying revenue there by 3 per cent. While cost-cutting and route adjustments secured sector-leading margins and a 23 per cent leap in the division's underlying operating profit to £59.1m. Management has found savings of $7m (£4.6m) following the purchase of Petermann, too, and further savings are likely this year. A slight dip in demand on intercity routes since the autumn and a weak euro trimmed Spanish profits by 7 per cent to £83.8m. Still, margins improved, urban revenues grew and prompt payments by hard-up local governments helped generate an extra £59m of cash. Back here, popular corporate and student travelcards nudged bus profits up 4 per cent to £34.1m and cost-cutting helped offset fuel costs and lower government subsidies. Losing the East Anglia franchise carved 38 per cent off UK rail profits to £26.7m, but a two-year extension to its c2c line looks likely and two contracts in Germany start in 2015.

Broker Liberum Capital expects adjusted pre-tax profit of £135m in 2013, giving adjusted EPS of 20.5p (from 25.5p in 2012).