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National Express Group PLC on Thursday reported a higher revenue for 2022 but its loss widened due to an impairment of goodwill charge for Madrid-based subsidiary ALSA.
The Birmingham-based public transport provider said annual revenue rose 29% year-on-year to £2.81 billion from £2.17 billion, though its pretax loss widened to £209.9 million from £84.9 million.
The company said the statutory loss was higher due to a £261 million non-cash impairment of goodwill in ALSA, a company operating long distance bus and coach services in Spain, Morocco, Portugal, Switzerland and France, bought by National Express in 2005.
Meanwhile, underlying pretax profit jumped to £145.9 million from £39.7 million.
‘A relentless focus on operational leverage, cost discipline and successful pricing actions has underpinned a recovery in [underlying] profit and margin as well as in the return on capital employed,’ National Express said.
National Express reinstated dividends at 5.0p per share ‘reflecting confidence in the future’.
Its expectations for 2023 are unchanged, and it has ‘clear and robust actions in place’ to mitigate macroeconomic headwinds and cut costs.
National Express shares were 13% higher at 139.94 pence each in London on Thursday morning.
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