Growth in all directions for National Express

National Express has finished the year in “excellent shape”, the transport group’s chief executive said yesterday as he pointed to sales growth across all divisions.

The firm has benefited from higher petrol prices, which has forced people from their cars onto public transport.

It said it was on course to meet full-year profit expectations as rail revenues are expected to have grown 6 per cent this year, bus revenues are forecast to be 4 per cent higher with coach revenues ahead by 5 per cent.

The trading update came as the Association of Train Operating Companies revealed prices would increase at an average of 5.9 per cent in January, following an average 6.2 per cent increase at the start of this year.

Elsewhere, National Express’s coach and bus divisions came under pressure from a Competition Commission report, which called for reforms to make it easier for new entrants to gain a foothold and prevent existing operators from undermining rivals.

Dean Finch, chief executive, said: “National Express is finishing 2011 in excellent shape.”

Profit margins in the group’s bus division, which operates in Dundee and the West Midlands, have climbed back above average levels for the industry, while passenger numbers returned to growth in the West Midlands. The group also added 250 buses to its fleet.

National Express is forecast to report a 12 per cent rise in pre-tax profits to £180.5 million in the year to 31 December.