Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

National Express (NEX)

  Print      Mail a friend

Wednesday 12 September, 2001

National Express

Interim Results

National Express Group PLC
12 September 2001




12 September 2001

                          NATIONAL EXPRESS GROUP PLC

                               Interim Results

                   For the six months ended 30 June 2001



Financial Highlights



- Turnover up 29.2% to £1,177.1 million (2000:  £911.3 million)

- Operating profit from continuing businesses up 20.9% to £76.8 million (2000:
  £63.5 million)

- Normalised profit before tax up 20% to £60.5 million (2000: £50.4 million)

- Restated normalised diluted earnings per share up 21.2% to 33.7p (2000:
  27.8p)

- Interim dividend up 12.3% to 7.3p (2000: 6.5p)

- Operating cashflow of £82.4 million (2000: £44.4 million)

- EBITDA interest cover of 6.4 times on continuing activities (2000: 5.2 times)

- Net assets of £456.3 million (2000:  £278.1 million)

- Net debt at 30 June of £370.4 million (2000: £415.3 million)

- Disposal of airports division for £241.0 million



Operational Highlights



- Train passenger revenue back to pre-Hatfield levels;

- Compensation received from Railtrack has so far mitigated the revenue
shortfall incurred;

- Delivery of the first buses in the UK to be fitted with Euro III engines,
bringing the cleanest buses on the road in the UK;

- Expansion of the USA division through renewals and conversions and
rebranding of Student Transportation;

- Further improvements in punctuality and efficiency in the Australian bus
division and rebranding of the trains division;

- New franchise proposals for Silverlink extension and ScotRail re-profiling
submitted to the SRA with Central Trains submission to follow shortly; and

- Investment in new technology including the launch of an on-line booking
service for train tickets, a new £1 million customer contact centre for the
coach division and the introduction of global positioning system technology
onto the coach fleet.


Commenting on current trading and prospects, Chairman, Michael Davies said:


'We are very pleased with our progress during the first half.


Trading within our bus and coach divisions continues to be encouraging. In our
trains division, passenger revenue has returned to pre-Hatfield levels and we
are focusing on stimulating further demand to return growth to the railways.
In addition, we have put a proposal to the SRA to re-profile our ScotRail
franchise and are preparing a similar submission for Central Trains. We
welcome the Secretary of State's blueprint for the development of the railways
and the improvement of services and believe that short term franchise
extensions can bring real benefits where major infrastructure upgrades are not
required. As a result we have also put a proposal to the SRA to extend our
Silverlink franchise by two years.

Overseas, there are additional opportunities to strengthen our position within
the USA and Australian markets.

We continue to deliver good growth from our operations despite external
challenges.  We are seeking new opportunities to grow our business and remain
optimistic about the outcome for the year.'

For further information please contact:


Phil White, Chief Executive
William Rollason, Finance Director
Nicola Marsden, Director of Group Communications
National Express Group PLC            020 7529 2000

Andrew Lorenz
Ben Foster
Financial Dynamics                    020 7831 3113



- There will be an analyst meeting at 0900 hours on 12th September at
Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London, WC2

- A copy of the analyst presentation will be available on our website
www.nationalexpressgroup.com at 0900 hours on 12 September 2001. For further
information contact 020 7529 2035.

- Photos are available through Newscast on tel: 020 7608 1000



                          NATIONAL EXPRESS GROUP PLC

                               Interim Results

                   For the six months ended 30 June 2001



Chairman's Statement

I am pleased to announce a good set of results for the six months to 30 June
2001.  These are very creditable given the challenges that our businesses have
faced over the period, particularly within UK trains.

The year started well with the completion in March of the sale of our Airports
Division for £241 million to Manchester Airport PLC.  The proceeds from this
transaction have been used to reduce debt in the short term. Longer term the
proceeds will be used to fund further expansion of the Group.

Solid progress was made within the bus and coach divisions. In our bus
division external cost pressures were addressed by agreeing a longer term pay
award, focusing the business to meet the changing demands of our customers as
well as hedging our fuel purchases. We support Government initiatives to widen
the scope of Fuel Duty Rebate to coaching and, as a result, we are preparing
to introduce half-price fares for senior citizens.

The performance of our trains division continues to be affected by the network
disruption following Hatfield. In the run up to Easter we saw patronage levels
back to the levels experienced pre-Hatfield, but our rate of progress
continues to be affected particularly with leisure travel on Central Trains
and ScotRail. We are concentrating on marketing plans to address these issues
and return patronage growth to the railways.

In the USA, we are increasing our market share by strengthening our geographic
concentration and increasing our foothold through conversions and renewals,
wherever possible at higher margins.

In Australia, a major rebranding of the train and tram division took place and
the delivery of refurbished rolling stock is underway. Considerable effort has
been made on upgrading the quality of the bus fleet and improving the
efficiency of services and the quality of depot facilities.

Technology continues to drive significant passenger benefits. To support the
growth of direct sales, we are investing in the use of technology in the
provision of customer information and developing new sales channels.


Financial Results

Turnover for the six months to 30 June 2001 was up 29.2% to £1,177.1 million
(2000: £911.3 million).  Operating profit before exceptional costs and the
amortisation of goodwill, increased by 15.4% to £77.9 million (2000: £67.5
million).  Profit before tax, exceptional costs and goodwill was up 20% to £
60.5 million (2000:  £50.4 million).

Exceptional operating costs were £2.6 million relating largely to the
consolidation of the London based train operations, following the acquisition
of Prism Rail in September last year.

Normalised diluted earnings per ordinary share, restated to exclude
discontinued activities, increased by 21.2% to 33.7p  (2000:  restated 27.8p).

At 30 June, EBITDA interest cover was 6.5 times (2000: 5.6 times).  Cash
generation from operations during the first six months remained strong at £
82.4 million (2000:  £44.4 million).  Net debt at 30 June was £370.4 million
(2000: £415.3 million) and net assets were £456.3 million (2000:  £278.1
million).  Gearing at 30 June was 81% compared with 149% at the same time last
year.

Dividend

An interim dividend of 7.3p per ordinary share - up 12.3% on the 2000 interim
dividend of 6.5p - will be paid on 19 October 2001 to shareholders on the
register on 21 September 2001.

Board Changes

During the past six months, three new Non Executive Directors joined the
Board, following the retirement of Clive Myers and James Watson at the AGM.

Tim Stevenson and David Ross joined at the beginning of February.  In
addition, I was delighted to announce the appointment in May of Sue Lyons OBE
as a Non Executive Director.  Sue has over 25 years' experience in the
engineering and manufacturing industries primarily at Rolls Royce where she
was latterly Managing Director, Defence (Europe).  She brings an extensive
range of skills from industry.

Safety

We are committed to investing in and playing our part in improving levels of
safety across the Group. Our principal objective is to ensure that employees,
passengers and the general public are kept free of injury arising from our
operations.

In the trains division, we continue to implement the recommendations of the
Uff and Cullen reports.  We are focusing on reducing the number of signals
passed at danger ('SPADs') with better route briefing of drivers, defensive
driving training and working with Railtrack to make changes to the signalling
infrastructure, where appropriate. The installation of the train protection
and warning system is on schedule.  All our trains will be fitted with this
system by the end of 2003.

During the period, an accident reduction programme has been successfully
introduced at Travel West Midlands ('TWM').  In addition a 'Well Driven'
scheme was implemented across the coach division to raise awareness of the
standards of driving.

In the USA and Australia safety training was rolled out to all our operational
units to establish consistent standards across all companies and, as a result,
accidents have been reduced.



Current Trading and Outlook



We are very pleased with our progress during the first half.

Trading within our bus and coach divisions continues to be encouraging. In our
trains division, passenger revenue has returned to pre-Hatfield levels and we
are focusing on stimulating further demand to return growth to the railways.
In addition, we have put a proposal to the SRA to re-profile our ScotRail
franchise and are preparing a similar submission for Central Trains.  We
welcome the Secretary of State's blueprint for the development of the railways
and the improvement of services and believe that short term franchise
extensions can bring real benefits where major infrastructure upgrades are not
required. As a result we have also put a proposal to the SRA to extend our
Silverlink franchise by two years.

Overseas, there are additional opportunities to strengthen our position within
the USA and Australian markets.

We continue to deliver good growth from our operations despite external
challenges.  We are seeking new opportunities to grow our business and remain
optimistic about the outcome for the year.


Chief Executive's Review of Operations

Buses

Travel West Midlands is the leading bus operator in the West Midlands; its
fleet of 1,800 buses covers more than 450 routes. It employs 5,400 staff and
incorporates Travel Dundee and Midland Metro.

Patronage over the six month period was stable, a considerable achievement
given the ongoing redevelopment that is being undertaken in Birmingham city
centre.

Turnover and operating profit were up 4% and 5% in the first half to £103.1
million (2000: £99.1 million) and £26.5 million (2000:  £25.2 million)
respectively. Yields improved through rerouting, pricing and marketing
activity.  In addition, value added tickets continue to be rolled out
including the Daysaver 4, a group saver ticket, which now accounts for over 2%
of all journeys. We continue to promote the benefits of travel by bus in the
West Midlands by improving services to new destinations such as regional
hospitals and new shopping centres.

A new five year pay deal for TWM drivers was agreed early in the year and,
within the context of a tight labour market, we continue to look at innovative
ways to attract and retain staff, including offering training and educational
programmes. More than 50% of our drivers have now enrolled for NVQ2, the
agreed standard for the bus industry and already over 30% of drivers are
accredited, which is ahead of the undertakings given by the industry.

We have also taken delivery of over 105 out of our total order of 180 buses,
with five new buses being delivered every week. These are the first buses in
the UK fitted with Euro III engines - the latest low emission engine currently
on the market making them the cleanest buses on the road in the UK.  We are
investing in the quality of our fleet with 700 CCTVs now installed on our
buses, enhancing safety for both passengers and staff.

We continue to work closely with local councils throughout the West Midlands
on the implementation of the bus priority schemes and infrastructure
investments.  As part of this initiative, TWM has introduced new vehicles onto
two Showcase routes.

Trains

We are the largest operator of train franchises in the UK. We operate nine
train franchises: c2c, Central Trains, Gatwick Express, Midland Mainline,
ScotRail, Silverlink, WAGN, Wales and West and Valley Lines. The division
employs 15,000 people.

Total turnover, including franchise receipts was up 44.3% to £672.6 million
(2000: £466.1 million) and operating profit before goodwill and exceptional
costs increased by 45% to £20.3 million (2000: £14.0 million).

In May we appointed Ian Buchan as the new Chief Executive of our trains
division.  He is responsible for the operation and performance of the train
activities including its e-retailing activities.  Ian, who reports to Ray
O'Toole, our Chief Operating Officer (UK), has more than thirty years'
experience in public transport.

In common with the rest of the industry, the performance of our trains
division over the six month period was severely affected by disruption to the
network on the back of the Hatfield accident. Recovery was further hit by the
duration of the foot and mouth outbreak, which has discouraged leisure travel
both within and into the UK.

Immediately following Hatfield, significant numbers of emergency speed
restrictions ('ESRs') were imposed across the network and these affected the
vast majority of our train services. A large proportion of the ESRs
subsequently remained in place for several months with Central Trains,
ScotRail, Midland Mainline (MML) and WAGN being worst affected. Silverlink and
WAGN still continue to be affected by engineering work.  In the run up to
Easter, patronage recovery was encouraging however leisure sector patronage
growth has since slowed which has had a negative affect on Central Trains and
ScotRail where up to 60% of patronage is from the leisure market.

We are encouraging people back onto the railways through marketing initiatives
which include low fare offers and promotion of back to normal service levels.
We are also working with Railtrack to improve performance and service levels
which continue to be disappointing.

Compensation received from Railtrack has so far mitigated revenue shortfall
incurred. We continue our discussions with our insurers and will pursue all
avenues to ensure that all our losses are recovered. We believe, however, that
a year's growth on rail has been lost.

We welcome the Secretary of State's consultative paper on rail refranchising.
We believe that short term franchise extensions can bring real benefits where
major infrastructure upgrades are not required, however we remain convinced
that only longer term franchises are viable where major infrastructure
upgrades are required.  Short term extensions would therefore benefit selected
franchises such as Central Trains, ScotRail and Silverlink.

As a result of this consultative paper we have put proposals to the SRA to
extend Silverlink's franchise.  Following the after effects of Hatfield we
have also submitted a proposal to re-profile our ScotRail franchise and are
preparing a similar proposal for Central Trains. We await a further
announcement from the SRA on the new Wales & Borders and Wessex franchises,
which we are establishing for the SRA, before deciding whether or not to
submit proposals for these franchises.

As part of our two year franchise extension, MML is shortly to place a £135
million order for twenty new 125mph trains which are due for introduction onto
the service from 2004. We are also in negotiations with Railtrack about
funding the £60 million MML infrastructure upgrade.

We have spearheaded the introduction of a new portable ticketing system to be
used by our train staff across the rail network. The new portable ticketing
units, incorporating leading-edge technology, will provide greater
flexibility, efficiency and improved passenger information and service levels.
Marking the first significant change in ticketing technology on the railway
system since 1984, we have been instrumental in developing a unit that can be
used by all  train companies. The technology is being trialled on Gatwick
Express and, subject to evaluation, will be rolled out to our other TOCs over
the coming months. We anticipate other railway operators will participate in
this initiative.

In April, we established a new e-retailing unit within the trains' division.
This unit is responsible for the division's internet retailing strategy and is
instrumental in the £6 million development of our on line ticket booking
service for train tickets across the UK which will be launched later this
month. We continue to work on other retail sales developments, including
upgrading retail outlets at our stations.

Over the six month period more of our new trains were delivered.  At c2c, 25
out of the remaining 56 trains have been delivered and at ScotRail, 7 out of
the remaining 40 have arrived with the balance of trains on both services due
by the end of this year. At Gatwick Express the full complement of eight
trains is finally in service and they have been received very favourably by
our passengers.

Elsewhere in our trains' division we have merged our London commuter TOCs,
Silverlink, WAGN and c2c to form London Lines, which will ensure that
synergies and best practice are implemented across these businesses. Following
the launch last year of the Airport Express marketing and sales alliance with
BAA, Stansted Express now forms part of Airport Express and benefits from the
joint marketing of rail-air transfer links to and from London. We continue to
meet with the RMT with a view to finding a resolution to the driver only
operation dispute that is ongoing on c2c services.

In July, Eurostar reported continuing year on year growth in the first half of
2001 with sales up 3%.

Coaches

The coach division provides Britain's only scheduled express coach network and
serves more than 1,200 destinations. AirLinks, the airport coach service,
operates premier, high-frequency scheduled coach services between all the UK's
major airports, as well as airside coaching services. The division has 2,000
employees.

The coach division produced a good performance in the first six months,
benefiting from the impact of disruption to rail services. Turnover was up
5.7% to £85.4 million (2000: £80.8 million) and operating profit increased by
19% to £1.9 million (2000: £1.6 million).

The express coaching division continued to invest in improving services on key
routes as well as in new technology. Direct sales and call centre sales now
account for more than 23% of total sales.  To cater for this increased demand,
in July The Rt Hon John Spellar MP, Minister for Transport, opened a new
30,000 sq ft customer contact centre for the division in Birmingham. This will
enable customers to buy tickets by phone or internet, provide valuable
internet and direct sales support, handle customer enquiries and support third
party agents.  47% of coach division sales are now through our own sales
channels, compared with 37% for the whole of 2000.

In addition the Group continues to invest in its coach facilities.  Work began
on the £3 million redevelopment of the coach station in Manchester, which will
open in April 2002 and is scheduled to accommodate the demand generated by the
Commonwealth Games in June 2002.

In June we agreed to fit the ITIS 'NavTrak' in-vehicle tracking product on all
scheduled coach routes using GPS technology.  Information collected from this
service, including vital traffic flow information, will enable us to increase
the reliability of services and to track vehicles better, thereby improving
customer information.

AirLinks, our airport coach business, continued to consolidate the businesses
acquired during 2000.  In addition, new scheduled routes are being created,
for example, the linking of Luton and Stansted Airports with the West
Midlands.  To cater for this extension, 14 new air conditioned vehicles for
Jetlink scheduled coach operations were purchased.

At Eurolines sales were impacted by a reduction in in-bound tourists from
North America as a result of the foot and mouth outbreak and were flat.
Despite this Eurolines has continued to extend its range of European
destinations and UK departure points.

USA

The USA division consists of student transportation and transit operations.
It employs 16,800 people, operates from 1,621 locations and has a fleet of
11,377 vehicles.

Turnover for the first six months was strong, up 49.8% to £202.5 million
(2000: £135.2 million) and operating profit was up 32.5% to £22.0 million
(2000: £16.6 million), including a full six month contribution from School
Services and Leasing ('SS&L').

During the period, whilst there was some pressure on margins through labour
and fuel costs, we were more than able to offset these by winning and
retaining contracts. There is evidence of increased tightening of school board
budgets leading to outsourcing of school bus services.   This could accelerate
the privatisation of school bus operations in North America.

Student Transportation continues to focus on improving the margins on existing
contracts at renewal and growing the overall market through conversions. Our
geographic concentration was strengthened with renewals and conversions,
particularly in the MidWest and Texas, through contracts outsourced by school
boards. To accommodate this growth and replace existing vehicles £17 million
will be spent on buying school buses during the current year. The start-up of
the new school year has gone well and we have integrated the new contracts
successfully. On a like for like basis turnover in the division grew by 6%.

In June, we rebranded Student Transportation 'Durham School Services',
emphasising the combined strengths of Durham and SS&L. This initiative was
conducted following extensive brand equity analysis and we now have a
consistent identity across North America on signage, customer videos,
uniforms, training materials and vehicles.

The performance of Public Transit was encouraging.  New operations commenced
in Seattle, San Jose and Denver. Paratransit operations grew strongly. Jim
Long was promoted to Chief Operating Officer of Public Transit to work
alongside Terry Van Der Aa who became Chairman.

Australia

In Australia, we are the largest private operator of train, tram and bus
services with operations in Brisbane, Melbourne, Sydney and Perth, under the
rail brands, M>Train, M>Tram, V/Line and the bus brands Blue Ribbon, National
Bus Company, Southern Coast Transit and Westbus. 4,200 staff are employed by
the division.

Turnover for our Australian operations totalled £106.7 million (2000: £115.1
million) with operating profit of £6.1 million (2000: £6.1 million).

Turnover was down in our Australian trains division due to the £9.9m decline
in the franchise payment.  Turnover in the first half of last year was boosted
due to passengers bringing forward their ticket purchases to avoid the
introduction of the goods and service tax (GST).  This has resulted in this
half year's turnover reduction which will be made up in the second half of
this year.

Under the M>Service Improvement Program we are introducing 62 new trains and
59 trams, the first of which will start operating in Victoria from late 2002.

On 1 October 2001, the Victorian metropolitan train and tram businesses will
become M>Train and M>Tram and a wide range of initiatives will be rolled out
to deliver increased customer benefits. On V/Line, a range of services which
cover the leisure market are being introduced to increase recreational travel.

We have continued to invest in the business to improve punctuality and
efficiency and passenger comfort of our services.  The high level of fare
evasion and the poor state of the ticketing system continues to affect
passenger revenues.   We are working with our fellow franchisees in Melbourne
and the Victorian Government to address this.

We have significantly strengthened the senior management of our bus division.
John Lee, who joined from the State Rail Authority of New South Wales, was
appointed Managing Director of our bus operations in Queensland and New South
Wales. Peter Jones, who oversaw the provision of bus services during the
Olympic Games, was appointed Operations Director.

Performance within the bus division was encouraging as passenger numbers and
margins both increased. Service development and patronage growth of 14% is
being achieved at Southern Coast Transit, in Perth with good patronage growth
of 2.2% also achieved in Melbourne.  Encouragingly, passenger numbers in
Sydney were stable, after the exceptional surge in the local economy brought
by the Olympics. However, student numbers continue to rise as many schools
recruit from wider catchment areas of western Sydney. This demand is likely to
continue during the next few years.

We undertook a full review of Westbus' network and as a result we have
rescheduled its services, improving reliability and service delivery.
Following the successful launch of the newly branded low-floor midibuses, the
livery is now being adopted for Westbus and its sister company, NBC Victoria.
Investments have included the delivery of 27 super low-floor air conditioned
buses, as part of a total order of 52 this year for Sydney and Melbourne.
Perth also benefited from the introduction of 14 new buses.

We continue to focus on improving services and increasing the use of public
transport particularly in Western Australia, and also in Victoria where public
transport patronage is growing faster than it has done historically.

Phil White
Chief Executive
12 September 2001


GROUP PROFIT AND LOSS ACCOUNT

For the six months ended 30 June 2001

                                                                       Audited
                                                                    year to 31 
                                                                      December
                   Total             Total     Total           Total      2000  
                  before             after    before           after     Total 
                   good-    Good-    good-     good-   Good-   good-     after
                    will     will     will      will    will    will  goodwill
                     and      and      and       and     and     and       and
                  excep-   excep-   excep-    excep-  excep-  excep-    excep-
                  tional   tional   tional    tional  tional  tional    tional
                   items    items    items     items   items   items     items
                    2001     2001     2001      2000    2000    2000
                      £m       £m       £m        £m      £m      £m       £m
Turnover                                   
- continuing     1,170.3        -  1,170.3     896.3       -   896.3  1,968.6
operations
- discontinued                   
operations           6.8        -      6.8      15.0       -    15.0     34.0

Turnover         1,177.1        -  1,177.1     911.3       -   911.3  2,002.6

Other                6.8        -      6.8       8.7       -     8.7     13.4
operating
income

Other           (1,106.0)   (2.6)(1,108.6)    (852.5)  (20.9) (873.4)(1,891.5)  
operating
costs

Goodwill               -   (20.0)   (20.0)         -    (7.3)   (7.3)   (22.7)

Total          (1,106.0)   (22.6)(1,128.6)    (852.5)  (28.2) (880.7)(1,914.2)
operating
costs

Operating          77.9    (22.6)    55.3       67.5   (28.2)   39.3    101.8
profit
- continuing       76.8    (22.6)    54.2       63.5   (28.2)   35.3     88.7
operations
- discontinued      1.1        -      1.1        4.0       -     4.0     13.1
operations
Operating          77.9    (22.6)    55.3       67.5   (28.2)   39.3    101.8
profit
Share of
operating
losses of          (1.1)       -    (1.1)       (1.8)      -    (1.8)    (1.8)
associated
Undertakings
Profit/               -     95.2    95.2           -    (0.4)   (0.4)    (1.0)
(loss) on
sale of
businesses
Profit on          76.8     72.6   149.4        65.7   (28.6)   37.1     99.0
ordinary
activities
before
interest

Net interest      (16.3)       -   (16.3)      (15.3)      -   (15.3)   (34.0)
payable
Profit on          60.5     72.6   133.1        50.4   (28.6)   21.8     65.0
ordinary
activities
before
taxation

Tax on            (13.0)     2.6   (10.4)      (12.2)    8.9    (3.3)   (12.9)
profit on
ordinary
activities

Profit after       47.5     75.2   122.7        38.2   (19.7)   18.5     52.1
tax

Minority              -        -       -        (0.1)      -    (0.1)    (0.7)
interest

Profit             47.5     75.2   122.7        38.1   (19.7)   18.4     51.4
attributable
to
shareholders

Dividends          (9.4)       -    (9.4)       (7.6)      -    (7.6)   (26.3)

Retained            38.1    75.2   113.3        30.5   (19.7)   10.8     25.1
profit



Earnings per
share                 
 - basic                            95.4p                       16.0p    43.4p
                                    
 - diluted                          88.6p                       14.6p    39.7p
                                   
 - normalised                       33.7p                       27.8p    63.7p
   diluted




NATIONAL EXPRESS GROUP PLC
GROUP BALANCE SHEET
For the six months ended 30 June 2001

                                                 Unaudited Unaudited    Audited
                                                   30 June   30 June         31
                                                                       December
                                                      2001      2000       2000
                                                        £m        £m         £m

Fixed assets

Intangible assets                                    526.1     278.8      523.7
Tangible assets                                      513.0     549.6      653.6
Investments and interests in associated               27.3      21.7       27.3
undertakings
                                                   1,066.4     850.1    1,204.6


Current assets

Stock                                                 21.1      15.6       20.7
Debtors                                              290.8     230.1      327.1
Cash at bank and in hand                              68.0      93.8       53.8

                                                     379.9     339.5      401.6


Creditors: amounts falling due within one year     (569.4)   (522.4)    (751.1)
Net current liabilities                            (189.5)   (182.9)    (349.5)
Total assets less current liabilities                876.9     667.2      855.1

Creditors: amounts falling due after more than     (397.8)   (365.2)    (458.2)
one year
Provisions for liabilities and charges              (22.8)    (23.9)     (19.6)
                                                     456.3     278.1      377.3


Capital and reserves
Called up share capital                                6.6       5.9        6.5
are premium account                                 43.1      35.9       40.5
Share capital to be issued                             0.4       0.4        0.4

Merger reserve                                        37.3         -       57.3

Capital reserve                                          -      17.0       17.0
Revaluation reserve                                   17.5      17.9       17.5
Profit and loss account                              347.1     196.7      233.6


Equity shareholders' funds                           452.0     273.8      372.8

Equity minority interest                               4.3       4.3        4.5
                                                     456.3     278.1      377.3













NATIONAL EXPRESS GROUP PLC

GROUP STATEMENT OF CASH FLOWS

For the six months ended 30 June 2001


                                            Unaudited  Unaudited        Audited
                                           six months six months        year to
                                                   to         to    31 December
                                              30 June    30 June            
                                                 2001       2000           2000
                                                   £m         £m             £m



Net cash inflow from operating activities        82.4       44.4          167.5

Net interest paid                              (21.5)     (16.0)         (17.6)
Interest element of finance lease rentals       (0.5)      (0.4)          (1.6)

Return on investments and servicing of         (22.0)     (16.4)         (19.2)
finance
UK corporation tax paid                         (3.7)      (6.4)         (24.8)
Overseas tax paid                               (0.5)      (1.2)          (1.8)

Taxation                                        (4.2)      (7.6)         (26.6)
Payments to acquire tangible assets            (63.1)     (42.0)         (89.3)
Receipts from sale of tangible assets             3.7        1.8            3.6
Purchase of shares to satisfy employee              -      (1.5)          (1.6)
share scheme
Payments to acquire other investments               -      (8.6)         (13.1)
Capital expenditure and financial              (59.4)     (50.3)        (100.4)
investment
Receipts from the sale of businesses            232.4          -              -
Payments to acquire businesses                  (0.5)     (52.4)        (283.0)
Net cash of businesses purchased or sold        (1.8)        0.1           52.6
Deferred consideration for businesses           (1.0)          -              -
acquired

Acquisitions and disposals                      229.1     (52.3)        (230.4)
Equity dividends paid                          (18.2)     (14.2)         (22.0)

Cash inflow/(outflow) before financing          207.7     (96.4)        (231.1)
activities

Management of liquid resources:

Cash withdrawn from short term deposits           6.6        7.3           19.4



Financing

Issue of share capital                            2.7        0.1            4.9
Repayment of capital element of finance         (1.9)      (3.6)          (4.4)
lease rentals

Movements on bank deposits relating to              -          -            3.1
loan notes

Net loans (repaid)/advanced                   (194.5)       69.5          187.5

Net cash (outflow)/inflow from financing      (193.7)       66.0          191.1

Increase/(decrease) in net cash                  20.6     (23.1)         (20.6)








NATIONAL EXPRESS GROUP PLC

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the six months ended 30 June 2001


                                          Unaudited Unaudited           Audited
                                                six       six        year to 31
                                          months to months to     December 2000
                                            30 June   30 June
                                               2001      2000
                                                 £m        £m                £m



Profit attributable to members of the         122.7      18.4              51.4
parent company

Exchange differences on foreign               (1.0)         -             (0.5)
currency net investments
Total recognised gains and losses             121.7      18.4              50.9




RECONCILIATION OF MOVEMENTS IN GROUP EQUITY SHAREHOLDERS' FUNDS

For the six months ended 30 June 2001


                                         Unaudited Unaudited            Audited

                                               six       six         year to 31
                                         months to months to      December 2000

                                           30 June   30 June
                                              2001      2000
                                                £m        £m                 £m



Total recognised gains and losses            121.7      18.4               50.9
Dividends                                    (9.4)     (7.6)             (26.3)
New share capital issued for cash              2.7       0.2                4.9
New share capital issued for non cash            -         -               80.5
consideration
Goodwill realised on disposals              (35.8)         -                  -
Net addition to shareholders' funds           79.2      11.0              110.0

Equity shareholders' funds at 1              372.8     262.8              262.8
January
Equity shareholders' funds                   452.0     273.8              372.8




SEGMENTAL ANALYSIS

For the six months ended 30 June 2001

                     Unaudited six months to 30 June         Audited year to 31
                                                             December

                              Operating          Operating            Operating
                     Turnover    profit Turnover    profit   Turnover    profit

                         2001      2001     2000      2000       2000      2000

Analysis by class of       £m        £m       £m        £m         £m        £m
business


Buses                   103.1      26.5     99.1      25.2      200.1      50.6

Trains                  672.6      20.3    466.1      14.0    1,058.6      34.1

Coaches                  85.4       1.9     80.8       1.6      186.8      11.3


UK operations           861.1      48.7    646.0      40.8    1,445.5      96.0

USA                     202.5      22.0    135.2      16.6      301.6      32.7

Australia               106.7       6.1    115.1       6.1      221.5      13.3


Continuing            1,170.3      76.8    896.3      63.5    1,968.6     142.0
operations
                          6.8       1.1     15.0       4.0       34.0      13.1
Discontinued
operations -
Airports
                      1,177.1      77.9    911.3      67.5    2,002.6     155.1



Exceptional items                 (2.6)             (20.9)               (30.6)

Goodwill                         (20.0)              (7.3)               (22.7)
                                   55.3               39.3                101.8




NATIONAL EXPRESS GROUP PLC



Notes



1.             Basis of preparation



These unaudited accounts, which do not constitute statutory accounts, have
been prepared using accounting policies set out in the Group's 2000 statutory
accounts.  The 2000 accounts received an unqualified auditors' report and have
been delivered to the Registrar of Companies.



2.             Exchange rates



The most significant exchange rates to the pound for the Group are as follows:


                   Six months to      Six months to            Year to
                    30 June 2001      30 June 2000        31 December 2000
               Closing    Average    Closing    Average    Closing    Average
                  rate       rate       rate       rate       rate       rate

US dollar         1.41       1.46       1.51       1.57       1.49       1.51

Australian        2.77       2.74       2.52       2.58       2.69       2.63
dollar



3.             Turnover



The turnover of the Group comprises revenue from road passenger transport,
airport operations, train passenger services and related activities in the UK,
USA and Australia.  Within the trains division, franchise agreement payments
from the Strategic Rail Authority and local Passenger Transport Executives
within the West Midlands region and Scotland are treated as turnover.  During
the first half year, franchise agreement payments amounted to £259.6m (2000
interim: £221.2m; 2000 full year: £482.6m) in the UK and £29.4m (2000 interim:
£39.3m; 2000 full year:  £69.6m) from the Victoria Department of Public
Transport in Australia.



4.             Exceptional items



The analysis of exceptional operating costs is as follows:


                 Six months to         Six months to                    Year to
                       30 June               30 June           31 December 2000
                          2001                  2000                         £m

                            £m                    £m
Buses                        -                   1.6                        1.6

Trains                     2.2                   1.7                        8.0

USA                          -                   0.7                        2.1

Australia                  0.4                   0.4                        2.4
Other                        -                  16.5                       16.5
                           2.6                  20.9                       30.6



All exceptional operating costs related to continuing businesses.



Exceptional operating costs primarily represent reorganisation costs,
including reorganisations following the acquisition of businesses, other than
£16.5m of costs arising in the six months to 30 June 2000 in respect of the
settlement, with no admission of liability, of litigation in the USA.



The profit on sale of businesses during the first half year of £95.2m, net of
expenses, arises on the sale of the Airports division for gross sale proceeds
of £241m.  It includes the benefit of £35.8m negative goodwill taken to
reserves on the acquisition of the airports (the release of which has no
effect on net assets or shareholders' funds).



5.                    Goodwill amortisation


                  Six months to         Six months to                   Year to
                        30 June               30 June          31 December 2000
                           2001                  2000                         

                             £m                    £m                        £m
Trains                     10.7                     -                       6.0

Coaches                     0.2                   0.2                       0.2

USA                         8.4                   6.3                      15.2

Australia                   0.7                   0.8                       1.3
                           20.0                   7.3                      22.7



All goodwill amortisation relates to continuing businesses.






6.             Taxation



Tax on profit on ordinary activities for the first half year has been
calculated on the basis of the estimated annual effective rate for the year
ending 31 December 2001.  The tax charge of £10.4m (2000 interim: £3.3m; 2000
full year £12.9m) represents an effective tax rate on profit on ordinary
activities, excluding goodwill and exceptional items, of 21.5% (2000 interim:
24.2%; 2000 full year 21.5%).  It includes overseas taxation of £1.4m (2000
interim: £2.5m; 2000 full year £0.5m).



7.             Earnings per share



The normalised diluted earnings per share has been calculated in addition to
the basic and diluted earnings per share required by FRS 14 since, in the
opinion of the Directors, it reflects the financial performance of the core
business more appropriately.



The normalised earnings for the six months ended 30 June 2000 and the year
ended 31 December 2000 have been restated to exclude the earnings from
discontinued operations.


                                        Six months   Six months         Year to
                                                to           to     31 December
                                           30 June      30 June            2000
                                              2001         2000
(i)             Basic earnings per           95.4p        16.0p           43.4p
                share



The calculation of the basic earnings per share is based on earnings of £
122.7m (2000 interim: £18.4m; 2000 full year: £51.4m) and on 128,604,613
ordinary shares, being the weighted average number of ordinary shares in issue
in the period (200 interim: 114,761,359; 2000 full year: 118,393,605).


                                          Six months  Six months        Year to
                                                  to          to    31 December
                                             30 June     30 June           2000
                                                2001        2000
(ii)            Diluted basic earnings         88.6p       14.6p          39.7p
                per share



The calculation of diluted earnings per share is based on earnings of £122.7m
(2000 interim: £18.4m; 2000 full year: £51.4m) and on the weighted average
number of dilutive potential ordinary shares in issue during the period, which
was 138,445,553 (2000 interim: 126,441,704; 2000 full year: 129,584,841).


                                            Six months Six months       Year to
                                                    to         to   31 December
                                               30 June    30 June          2000
                                                  2001       2000    (Restated)

                                                       (Restated)
(iii)           Normalised diluted earnings      33.7p      27.8p         63.7p
                per share



The calculation of normalised diluted earnings per share is based on
normalised earnings of £46.6m (2000 interim: £35.1m; 2000 full year: £82.5m)
and on the weighted average number of dilutive potential ordinary shares in
issue during the period, which was 138,445,553 (2000 interim: 126,441,704;
2000 full year: 129,584,841).



The reconciliation of the weighted average number of shares in issue during
the period is as follows:


                                           Six months  Six months       Year to
                                                   to          to   31 December
                                              30 June     30 June          2000
                                                 2001        2000        
                                               Number      Number        Number
Basic weighted average shares             128,604,613 114,761,359   118,393,605

Adjustment for dilutive potential           9,840,940  11,680,345    11,191,236
ordinary shares
Diluted weighted average shares           138,445,553 126,441,704   129,584,841



The analysis of normalised profit after tax and minority interest is as
follows:


                                       Six months   Six months         Year to
                                               to           to     31 December
                                          30 June      30 June            2000
                                             2001         2000              
                                               £m           £m             £m
                                                    (Restated)      (Restated)

Profit after tax and minority               122.7         18.4            51.4
interest
                                            
Earnings from discontinued                  (0.9)        (3.0)          (10.4)
operations                                    

Exceptional operating costs                   2.6         20.9            30.6

Goodwill amortisation                        20.0          7.3            22.7

(Profit)/loss on sale of businesses        (95.2)          0.4             1.0 

Tax on exceptional items and                (2.6)        (8.9)          (12.8)
goodwill
                                             46.6         35.1            82.5






8.             Cash flow reconciliation



The reconciliation of the operating profit to net cash flow from operating
activities is as follows:


                                         Six months   Six months        Year to
                                                 to           to    31 December
                                            30 June      30 June           
                                               2001         2000           2000 
                                                 £m           £m             £m
Operating profit                               55.3         39.3          101.8

Depreciation of tangible assets                29.9         20.6           43.9

Goodwill amortisation                          20.0          7.3           22.7

Increase in stocks                            (0.5)        (0.7)          (1.5)

Decrease/(increase) in debtors                 36.4       (12.1)         (57.1)

(Decrease)/increase in creditors             (62.8)       (10.1)           61.7

Increase/(decrease) in provisions               4.1          0.3          (4.3)

Other movements                                   -        (0.2)            0.3

Net cash inflow from operating                 82.4         44.4          167.5
activities



The reconciliation of net cash flow to movement in net debt is as follows:


                                                       Six      Six    Year to
                                                    months   months         31
                                                        to       to   December  
                                                   30 June  30 June       
                                                      2001     2000       2000  
                                                        £m       £m         £m

Increase/(decrease) in cash in period                 20.6   (23.1)     (20.6)

Cash outflow/(inflow) from decrease/(increase) in
debt and in lease financing                          196.4   (65.9)    (186.2)

Cash inflow from movement in liquid resources        (6.6)    (7.3)     (19.4)

Change in net debt resulting from cash flows         210.4   (96.3)    (226.2)

Non cash movements in net debt                      (24.2)    (3.1)     (14.5)

Movement in net debt in period                       186.2   (99.4)    (240.7)

Opening net debt                                   (556.6)  (315.9)    (315.9)

Net debt                                           (370.4)  (415.3)    (556.6)



Non cash movements in net debt primarily represent exchange movements.



Copies of the interim statement can be obtained from the Company Secretary at
75 Davies Street, London W1K 5HT.



                                   - ENDS -