Dundee bus operator National Express yesterday said it was carrying more passengers, despite cost-cutting across its timetable of UK services.
The group, which also operates scheduled bus routes in the West Midlands, used a market update to reveal a 3% hike in commercial revenue during the first 4 months of the year.
Commercial passenger revenue also rose by 3%, with National Express claiming the step-up came amid better customer service, with improved punctuality and fewer complaints.
Travelcard and smartcard sales also rose, while the company one of five shortlisted to take on the ScotRail franchise from next year continued “driving cost efficiency and growing profit in the division”.
Chief executive Dean Finch said the company was “on-track” to deliver board expectations for the year.
Stock in the firm yesterday closed up almost 1% or 2.70p at 277p.
“While we have faced specific challenges, such as the exceptional US weather and strike action in Spain, we have taken substantial steps to address their impact, including a renewed focus on cost efficiencies,” Mr Finch said.
“We are also driving our strategy to develop opportunities in existing and new markets and I am particularly pleased by our progress in the UK, especially the increase in the number of passengers travelling with us.
“In the last few months we have secured important new contracts, including substantial new business in North America, and also submitted three high quality UK rail bids.
“Our cash generation remains strong and I believe we have the right strategy in place to deliver substantial value for our shareholders.”
National Express’ Dundee network which was forced to cut hundreds of services in December after drivers refused to work overtime in a dispute over staff shortages, sackings and suspensions has overcome the threat of industrial action following a sustained period of recruitment.
Investment has also continued, with the company placing an order for 600 state-of-the-art new buses with Falkirk manufacturer Alexander Dennis.
The £100 million deal, announced in March, will support up to 2,000 jobs, and will see more efficient vehicles in use on routes across Scotland and throughout the West Midlands.
But the company has also proposed a string of alterations to its timetable including scrapping the 5N night bus due to falling customer demand.
Across the group which also includes UK coach and rail, bus interests in Spain and Morocco, and operations in the North American school bus market revenues rose 2% on a like-for-like basis during the early months of 2014, with UK divisions all showing strong growth following a decline in disruption caused by “snow days”.
But weather caused challenges in North America, while strike action in Spain also proved a setback.