National Express shares (LON: NEX) are trading almost 10% higher on Wednesday after it traded “slightly above” its expectations.
The transport group has been awarded an up to a nine-year contract to run 240 buses in Lisbon, Portugal as well as a five-year, paratransit contract for 75 vehicles in California.
“We continue to be pleased that our strong customer relationships are sustaining high levels of revenue during the pandemic’s on-going uncertainty. We are grateful to our customers and the public authorities who have recognised the essential role our services play in maintaining the ability of people to get to work and to keep the economy functioning, even during such challenging times,” said Chris Davies, Interim Group Chief Executive and Group Finance Director.
“This robust revenue collection and on-going tight cost control is underpinning positive EBITDA and cash flow projections. We are encouraged to see continued passenger growth across the Group, as our services provide safe and reliable services to those choosing to travel.
“We remain resolutely optimistic about the longer term opportunities for the Group. The enduring strength of our customer and stakeholder relationships during the pandemic demonstrate that our reputation for safe and excellent service has provided a crucial resilience as we navigate this uncertain period. In addition – as the recent contract wins in Lisbon and California demonstrate – they also provide the platform for future growth once we emerge from the pandemic,” he added.
National Express shares (LON: NEX) are trading +9.28% at 136,00 (1101GMT).
