Management review

Outlook

Our businesses throughout Europe have a track record of demonstrating the real benefits the private sector can bring to public transport. Public authorities are increasingly aware of these benefits and recognising the opportunity to improve the value of available services whilst eliminating unnecessary costs. This recognition is a strong force behind the continuing march of market liberalisation, providing Arriva with many exciting growth opportunities.

At our mainland Europe investor day, in May 2007, we announced the intention to double mainland Europe revenue from 2006 levels in five years, including our share of associated companies’ revenue. I am pleased to say we are well on the way to achieving this goal with the work already done in 2007 and so far in 2008.

In our UK Bus division we look forward to further profitable growth driven by route revitalisation and marketing initiatives, and to an improved environment for partnership working once the Local Transport Bill completes its passage.

In our UK Trains division we look forward to the benefits of a full year contribution from our CrossCountry franchise and to building on our strong operational performance, with additional capacity in due course helping to meet strong demand.

Across the group we will continue to pursue growth in our existing businesses, as well as creating opportunities for further expansion into additional markets, while the full benefits of recent successes in growing our operations will be demonstrated in 2008. Our financial strength, order book, diversified portfolio of operations and geographical spread show the qualities of a robust, resilient business poised for further success.

David Martin
Chief Executive