We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Cost control measures ‘bearing fruit’ for National Express

Transport group ups profits amid boardroom strategy battle

Article comments

Cost control measures are “bearing fruit” for National Express, the group’s chief executive Dean Finch claimed on Thursday as he reported a notable rise in profits in the first quarter.

Pre-tax profits across the transport business were up 30 percent in the first three months of 2011, apparently adding weight to Finch’s claims of having the right strategy to deliver value to his shareholders.

The transport group’s largest investor, the hedge fund Elliott, has been pushing for a change in focus for the business and for three new non-executive directors to be appointed to the board.

Chairman John Devaney last month accused Elliott of attempting to circumvent best corporate governance practice as a seemingly bitter row rumbled on at the train and bus operator.

But speaking to reporters on Thursday, Finch struck a more conciliatory tone and said the views of the hedge fund, which owns 18 percent of all National Express shares, need to be properly considered.

“No one is picking up arms to fight each other but Elliott are our largest shareholders with 18 percent of the company's stock and deserve a voice - they have put their money where their mouth is and we are listening to them,” he said.

Reflecting on the group’s performance in the first quarter of the year, the CEO said: “Our strategy is sound and will deliver significant shareholder value over the long term.”

“Our continued cost control initiatives and increased investment programme are both bearing fruit.”

The overall outlook for the financial year was described as “encouraging”, with risk reduction plans being implemented and group revenues in Q1 up five percent on the same period in 2010.



Cost control measures ‘bearing fruit’ for National Express

What makes a good board report?

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Vodafone buys out partner's stake in Indian unit

Mobile giant acquires the remaining 11% it did not already ownmore ..

Financial advisers not being clear enough on charges, says watchdog

FCA’s review found 73% of firms failed to provide adequate informationmore ..

EU data retention rules violate privacy rights, EU court rules

Rules requiring telcos to retain communications metadata are disproportionate, the court saidmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Corporate governance: A catalyst for innovation

Corporate governance is a powerful tool in a C-suite executive’s arsenalmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *