Bus operator National Express today said it is well placed to take customers from bust rivals, despite swinging into the red.
The company, which has received aid from governments across Europe, posted a £60.7 million loss for the first half of the year, down from a profit of £114.6 million in 2019. Revenues tumbled 23.6% to £1.03 billion.
Chief executive Dean Finch said: “We believe our leadership positions in many diverse and attractive markets are likely to strengthen, as other operators are unable to withstand the impact of the pandemic.”
Demand slumped by 80% as Britons were advised to stay at home during lockdown but it managed to rake in 50% of its expected revenues. Its UK coach business has restarted journeys.
The company raised £230 million from investors in May and has access to £1.7 billion to see it through the crisis. Finch said there are some signs of demand returning, but the prospect of local lockdowns, impact of quarantines and uncertainty over when US schools will reopen are still weighing on the company’s outlook.
The shares, which began the year at 473p, fell 12% to 154p, valuing the transport firm at £944.5 million. NatEx said 12 of its staff had died from Covid-19.
Neil Shah, director of research at Edison Group, said: "Fortunately, National Express has taken swift action to strengthen its balance sheet, taking advantage of the UK Government's furlough and emergency loan schemes, so much so that the company claims that it would be able to meet renegotiated debt tests over the next 12 months.
"Furthermore, its proactive communication with customers over changed service schedules and its plans to offer a 'cleaner and greener' transport service going forward should mean customer demand returning eventually and a future for the coach operator."
