National Express Group hit its expectations for 2022 despite bus driver strikes, but it will implement £25 million worth of cost-cutting after agreeing to a higher-than-expected pay deal.
It said UK costs were hit by the pay deal with bus drivers, and as a result it will take steps to mitigate those costs. That includes a £25 million cost-cutting scheme, though it said that no front-line roles would be affected.
Revenue from the UK was up by 87%, as many customers turned to its coaches amid rail strikes.
Overall revenue for the first three months of the year came to £774.4 million, up 25% yuear-on-year.
“I am pleased to report another quarter of progress at National Express with Group revenues in-line with expectations, albeit affected by the bus driver strike in the UK, and recognising that the most significant trading periods for our US School Bus and UK and Spanish coach operations still lie ahead,” CEO Ignacio Garat said.
“Given ongoing industry and economic uncertainties, we have launched a wide-ranging productivity improvement and cost-reduction programme that will start to deliver benefits in the second half of this year.
“That initiative will also help to ensure we deploy the right resource most efficiently across the business and capitalise on the significant opportunities for growth that we face.”
