National Express shares were trading up 4.3% to 252p on Thursday morning after results revealed a solid cash inflow of £123m in 2021.
The company reported a cash inflow in 2021 of £123.4m, a phenomenal comeback from their cash outflow of £196m in 2020.
National Express saw a statuary group loss before tax of £84.9m in 2021, a great improvement from £444m in 2020, due to losses from their coach business.
The company also reported that the Stagecoach and National Express merger will not be happening as Stagecoach has accepted a £595m offer from DWS Infrastructure.
In a bid to further stabilise the business and manage their capital between obligations and growth, the group has decided not to pay a dividend for 2021.
Revenue grew 11% from £1.96bn in 2020 to £2.17bn in 2021 as travel restrictions were lifted. Passenger journeys were up 37% in 2021. The coach firm also managed to hedge fuel and energy costs.
The locomotive group saw an increase of 60% to £300m in EBITDA.
The net debt for the group has increased from by £50m in 2021 as a result of higher growth capital expenditure of £134m and an increase of roughly £6m in acquisitions and disposals.
Going forward, the company is building their opportunities for growth by launching Evolve, a project by National Express, which targets cities with high traffic congestion being taken over with efficient public transportation systems.
Evolve is expected to grow revenues by £1bn and a minimum increase of £100m in EBIT by 2027.
“Mobility restrictions are lifting across our markets and people are travelling again. But we cannot return to ‘travel as usual’ if we are going to meet the pressing needs of COP 26,” said Ignacio Garat, Group Chief Executive, National Express.
“In 2021 we launched our Evolve Strategy with a clear vision and purpose, to be the world’s premier shared mobility operator, leading modal shift from cars to public transport.”
“Modal shift is a necessity for the planet and good for our business. We have translated Evolve into detailed action plans in each of our businesses and we are already seeing the benefits.”
“I anticipate further strong recovery in demand over the coming year, and I am excited about what lies ahead, with Evolve providing greater clarity of both the significant growth opportunities and the path towards it.”
“Based on current projections, it is our intention to reinstate consistent dividend payments starting with a dividend for full year 2022.”