National Express increases shareholder dividend by 10 per cent in ‘record’ set of results

National Express shareholders were today rewarded with a 10 per cent increase in their dividend as the coach and bus firm delivered a "record" set of annual results.

Pre-tax profits at the firm stood at £177.7m in 2018, up 13.6 per cent on the previous year. Revenue also increased from £2.32bn to £2.45bn, while operating profit was up 8.8 per cent from £197.9m to £215.4m.

Shares were up 0.24 per cent at market close.

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National Express chief executive Dean Finch said: "I am delighted we have again delivered a record-breaking set of results. Revenue, profit and free cash all increased significantly, with organic top line growth in every division augmented by strategic acquisitions and cost control."

National Express said that while the likelihood of a "disorderly Brexit appears to be increasing", the diversified nature of its business model and limited exposure to cross-border trade meant that the UK's departure from the European Union did not represent a material threat.

"We no longer run scheduled operations between the UK and the continent, therefore the main Brexit risk specific to the Group is that inbound and outbound airport travel in our UK coach business may be impacted should air travel be materially reduced due to restrictions or currency fluctuation," the firm said.

"Our Spanish business carries very few UK nationals, making up only around 0.1 per cent of total passenger revenue. We purchase some vehicles from European manufacturers for UK operations although we have good working relationships with both these and alternative UK suppliers to mitigate any long-term impact should further Sterling depreciation materially increase purchase cost."

National Express said it had "suitable mitigation plans in place however Brexit eventually unfolds".