Arriva forecasts strong half-year sales

Source: Supply Chain Digital

Date :27/06/2008 09:02:39

The European bus and transport group Arriva plc said yesterday, June 26, that its half-year revenues would rise by more than 50 percent after strong performance across the group.

The Sunderland-based company said earnings should show “significant'' growth in the half and for the full year, matching forecasts, despite the rising fuel costs which are impacting the transport sector.

“The outlook for 2008 remains positive,” said Arriva, which runs more than 13,000 buses and trains across the UK and Europe. “We will continue to benefit from a strong balance sheet, a strongly cash-generating business and the resilience of our diversified portfolio.''

Bus and rail services

The company’s new CrossCountry train service, which the company took over from Virgin last November, produced "pleasing" results with passenger revenue up an estimated ten percent on the equivalent service last year.

Arriva Trains Wales, the company's other rail franchise, reported a 10.7 percent increase in revenue.

There was also growth in the bus division thanks to more passengers, network development, increased contract mileage in London and the acquisition of airport services Tellings Golden Miller and Excel, the company said.

Arriva rose 17 pence, or 2.7 percent, to 648 pence in London trading, lifting its market value to £1.29 billion. The company reports first-half earnings August 22.