NX group final results

[winston]

NX Group full year financial results highlights:

Year ended 31 December                       2012    2011
           
Revenue (£m)   Non-rail                           1,636.1    1,549.7
                   Rail                                   195.1    688.3
                   Group                           1,831.2    2,238.0
           
Group operating profit (£m) Non-rail   185.2   181.8
                                       Rail           26.7           43.4
                                       Group           211.9   225.2

Share of results from associates (£m)   1.4           1.4
Net finance costs (£m)                       (49.2)   (46.4)
Profit before taxation (£m)               164.1   180.2
           
Statutory profit for the period (£m)       61.3           102.6
Group operating margin                       11.6%   10.1%
Net debt (£m)                                       828.2   633.7
           
Basic EPS (pence)   Non-rail                   21.6           20.7
                           Rail                           3.9           6.3
                           Group                   25.5           27.0
           
Total dividend per share (pence)       9.75           9.50

Profit performance in non rail divisions is improving & the company statement indicates that they are intending to build a high quality operation with best in class margins across the divisions, so investment levels should hopefully be maintained for the foreseeable
NX UK bus average age of the fleet is now less than 9 years - it doesn't hint if they are looking to expand UK bus / would be interested in anything First Group may be wishing to dispose of
Net debt has increased by £194.5 Million
Despite improving performance, it's noticeable that NX group still haven't recovered profit levels back to what they were prior to the loss of the East Anglia rail franchise to Abellio, they are still £13.3 Million short. I think they could with making another acquisition similar in size to Petermann or if First London operations were for sale that would help bridge the gap or maybe fill it entirely.
It also suggests NX are setting up coach operations in Germany from this April under the 'city2city' brand

[winston]

Sorry, figures were all in line when I posted them

[winston]

The stock market seem impressed with the final results, as NEG shares are currently trading at +12% at present, valuing the group at £1.12 billion some £194 million more than First Group

[richie]

Hopefully we will see some new venture emerge

[winston]

Hopefully we will see some new venture emerge

It looks as though the new target market is Germany, even though NX have won two rail franchises to date they don't start until Dec 2015 and any new coach operation setup in the country will no doubt be loss making whatever its size is initially at least. NX seem to be expanding in to paratransit in the United States and there may well be more opportunities in Morocco via ALSA for urban bus concessions. I seem to remember Spain may be looking at privatising some of its railways as well. I'd still like to see NX be a bigger player in the UK bus market which would have to be through acquisition or a merger

[winston]

It also suggests NX are setting up coach operations in Germany from this April under the 'city2city' brand

It appears the NX new 'city2city' coach operation in Germany launching in April will initially comprise of 15 vehicles, I suspect that NX may be partnering with an existing German coach business this provides coaches for Eurolines work

http://www.reuters.com/article/2013/03/06/nationalexpress-germany-idUSL6N0BXKIP20130306