Local Dundee bus operator Tayside Public Transport Company experienced a “year of steady progress”, helping deliver a “robust” financial performance for parent company National Express.
Regional managing director Phil Smith said the Dundee group, a wholly-owned subsidiary of National Express, performed well against a poor economic climate and “in the teeth of a tough economic background”.
His comments came as public transport operator the National Express Group revealed pre-close results for its financial year, reflecting a continued delivery of good revenue and profit performance, leaving it on track to achieve full-year results in line with company expectations.
“In a Scottish context, during the last year the cut-back in bus operators’ service grant cost us quite a lot of money,” Mr Smith said.
“High street trading continued to be tough, particularly throughout the poor summer weather,” he added.
“But against this backdrop, we have still managed to operate in a positive way.”
Group chief executive Dean Finch said National Express had delivered growth across its core bus and coach operations, supplemented by a strong performance in rail.
Across the company’s UK bus network, he said commercial revenue benefited from a fleet investment programme and increased 4% in the year to date.
Within the sector, the operator said revenue was boosted by increased growth of travel card products, backed up by excellent student card sales throughout the ‘back to college’ period.
Mr Smith said this was similarly the picture across the Dundee network, which experienced good annual sales of student weekly travel tickets.
“The recent launch of our adult weekly travel card also proved popular, whilst an eastward extension and increased regularity to our Service 5 buses, running from Broughty Ferry to the city and onwards to Ninewells was also well received,” he said.
During the year, the operator also gained a new contract with Angus Council to connect more rural areas, and launched its Night Owl service to connect Broughty Ferry and the city centre on Friday and Saturday nights.
UK-wide, the company said a new concessionary agreement, in place for the next three years, will stand it in good stead in continuing to deliver growth over the medium term.
Meanwhile, National Express’s UK coach fleet grew its core revenue from non-concessionary ticket holders by 2%.
The company said last year’s withdrawal of the Government concession subsidy was offset by a good performance from Olympic contracts.
The coach division, which covers 1,000 destinations in the UK, is expected to see passenger volumes rise 4% in the year to December 31 after routes were added between Liverpool airport and Leeds, Liverpool and Newcastle, and Ipswich and Heathrow.
The company secured £500 million in new contract revenues throughout the financial year, helping to maintain a “robust” financial position.
“The group remains on course to deliver its 2012 targets, despite the significant challenges of prevailing economic conditions and Government austerity measures,” said Mr Finch.
“Recent bid wins from an expanding pipeline of opportunities, combined with strong cash generation, underpin our platform for growth in the medium term.”
In Spain the Alsa business grew revenues by 3%, while North American underlying revenues increased by 3%.
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