(Reuters) – National Express plans to resume dividend payouts in 2022 as the bus and train operator forecast revenue this year to inch close to pre-pandemic levels as travel activity recovers.
The company, whose takeover attempt of Britain’s biggest bus and coach operator Stagecoach hit a bump this week after a rival suitor outbid it, said on Thursday it was looking at options after the counter-offer.
Transport companies are still recovering from the pandemic fallout as economies reopen and people board trains and buses again for work and leisure. But the recovery has been gradual as fuel prices, a big chunk of cost for transporters, are soaring because of the Russia-Ukraine crisis.
National Express, which operates in eight countries, expects the fallout from the Ukraine crisis to be limited as it has fully hedged its fuel needs for 2022.
The Birmingham-based company reported an underlying pretax profit of 39.7 million pounds ($52.34 million) for the year ended Dec. 31, versus a loss of 106.1 million pounds a year earlier.
Stagecoach withdrew its support for National Express’ all-share bid of 445 million pounds on Wednesday in favour of a higher cash deal worth 594.9 million pounds with a fund owned by investment manager DWS Infrastructure.
National Express’ free cash flow stood at 123.4 million pounds in 2021.
($1 = 0.7585 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)
