The National Express Group PLC (LON: NEX) share price surged 14.2% after releasing its full-year results for 2022. The multinational public transport company reported a 29% increase in revenues to £2.8 billion compared to the £2.17 billion generated in 2021.
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The transport company also reported a 39.4% jump in pretax profits from £300.0 million in 2021 to £418.1 million in 2022. The firm’s underlying operating profits surged 126.7% to £197.3 million from 2021’s £87.0 million.
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Investors cheered the reinstatement of the full-year dividend after National Express announced that it would pay a full-year dividend of 5.0p per share. The move shows the management team’s confidence in the company’s prospects. However, the company reported a statutory pretax loss of £209.9 million due to a £261 million non-cash goodwill impairment in ALSA.
National Express also achieved other milestones during the 12 months, such as witnessing strong demand for its services from passengers resulting in a 23% increase in passenger journeys across the group.
The public transport company also managed to recruit 900 drivers during the year, allowing it to reinstate some of the routes it had abandoned as part of its US School Bus transport service. The firm also managed to get its customers to pay about 10% more for its services on the contracts renewed in 2022.
The higher rates charged on contract renewals enabled National Express to stay ahead of inflation and higher driver costs. The company also revealed that it had hedged its fuel costs for 2023 and 56% for 2024.
Ignacio Garat, Group CEO of National Express, said: “I am pleased with the significant progress we made in 2022, which saw strong growth in passenger volumes resulting in a 29% increase in Group revenue; the doubling of revenue in our UK coach business and ALSA’s revenue exceeding €1bn for the first time. After a first quarter that was impacted by Omicron, the resilience and agility of our teams amid a uniquely challenging operating environment meant we saw momentum build across our businesses through the year and continue into 2023.”
*This is not investment advice.
National Express (NEX) share price.
The National Express (NEX) share price surged 14.15% to trade at 141.15p, from Wednesday’s closing price of 123.65p.
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