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Highlights
- Public transport firm National express was trending today ahead of its launch of National Express Leisure business targeted for value priced holiday and leisure travel.
- The company H1 2021 EBITDA had risen by 45.2 per cent due to improving profit metrics and positive free cash flow, indicating it is recovering despite covid-19’s impact on the group.
UK based National Express Group PLC (LON:NEX), a multinational public transportation company, is going to launch its National Express Leisure business targeting holiday and leisure travel, set to be opened by the end of August.
The company also recently reported improvement in H1 2021 results, despite the impact of covid-19.
National Express Group (LON:NEX) share price performance
FTSE 250 index listed firm National Express Group shares were trading at 260.20, down by 1.07 per cent on 27 August at 12:02 PM GMT+1. Meanwhile, the FTSE 250 index was trading at 23,986.94, up by 0.14 per cent.
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National Express’ market cap stands at £1,615.05 million, and its one-year return is at 97.72 per cent as of 27 August.
National Express Leisure
The upcoming leisure segment of National Express’ business will combine several of the group’s existing brands, such as Fareham based coach hire National Express subsidiary Lucketts and Leicester based bus and coach company Woods Coaches under the same National Express Leisure brand.
The new leisure company will offer travel packages such as readymade and a more customisable build one’s own travel package option.
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National Express’ H1 2021 results
The company recently reported its H1 2021 results, with its revenues dropping by 3.8 per cent to £0.99 billion, compared to £1.03 billion in H1 2020.
However, it reported strong earnings before interest, tax, depreciation, and amortisation (EBITDA), with its H1 202 figures rising by 45.2 per cent to £128.2 million from £88.3 million in H1 2020.
The rise was attributed to improved underlying operating profit and also positive profit before tax despite covid-19’s impact on the group.
It also reported a positive free cash flow (FCF) with 177 per cent cash conversion, as its H1 2021 FCF stood at £40.6 million, from a negative FCF of £193 million in H1 2020.
Bottom Line
Domestic travel is expected to rise this summer as major international travel restrictions persist. While the UK has added 7 new countries to its green list today, rising Delta cases still weigh on the sector. Thus, the pivot towards a leisure business can be a beneficial move for National Express.
