Stormy weather across the UK has angry commuters cursing the transport system. Fortunately, there’s little reason to aim these grievances at National Express (NEX); analysts said winter weather conditions didn't have a material impact on group numbers. Instead, the UK bus and coach division, and German rail, both beat expectations. The former saw a 5.3 per cent increase in operating profit aided by price increases, while the latter saw sales at constant currency improve by a fifth due to the timing of certain revenues.
Chief executive Dean Finch said the group’s international diversity was an “important asset”. Indeed, the majority of sales now come from outside the UK. North America delivered a 6.6 per cent increase in operating profit to $122m (£88.9m), although driver demand for higher pay meant margins contracted by 30 basis points to 9.3 per cent. The Spanish and Moroccan division, ALSA, saw a 4.4 per cent increase in operating profit to €108m (£95.9m) thanks to a higher number of passengers.
Analysts at Liberum expect pre-tax profit of £211m in 2018, giving EPS of 31.5p, compared with £200m and 29.1p in 2017.
| NATIONAL EXPRESS (NEX) | ||||
| ORD PRICE: | 394p | MARKET VALUE: | £2.02bn | |
| TOUCH: | 394-395p | 12-MONTH HIGH: | 394p | LOW: 336p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 224p* | NET DEBT: | 76% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 1.89 | 64.4 | 11.1 | 9.8 |
| 2014 | 1.87 | 66.5 | 11.6 | 10.3 |
| 2015 | 1.75 | 123 | 20.9 | 11.3 |
| 2016 | 2.09 | 135 | 23.0 | 12.3 |
| 2017 | 2.32 | 156 | 25.7 | 13.5 |
| % change | +11 | +16 | +12 | +10 |
| Ex-div: | 26 Apr | |||
| Payment: | 21 May | |||
| *Includes £1.6bn of intangible assets, or 319p a share | ||||
