Press releases

• Group operating profit from continuing operations* up 5 per cent to £56.8 million (2005: £54.1 million), despite fuel cost pressures.
• Double digit earnings and revenue growth in mainland Europe:
  • market positions strengthened in Germany, Sweden and Portugal
  • revenue increased by 17 per cent to £361.5 million (2005: £308.3 million)
  • 14 per cent increase in operating profit* to £24.3 million (2005: £21.3 million).
• Robust UK Bus performance – operating profit up £1 million despite fuel cost increase of over £7 million.
• EBITDA up 11 per cent from continuing operations to £108.5 million (2005: £97.7 million).
• Adjusted EPS* from continuing operations broadly maintained at 19.5 pence (2005: 19.8 pence). Basic earnings per share up to 28.3 pence (2005: 20.3 pence), reflecting the profit on disposal of Arriva Vehicle Rental.
• Interim dividend up 5 per cent to 5.32 pence.

* excluding goodwill impairment, intangible asset amortisation and exceptional items.

Chief executive, David Martin, said:

These solid results reflect the underlying resilience of the UK business and the continuing expansion of our overseas operations. We have delivered increased revenue and profits from our mainland Europe business as it continues to go from strength to strength.

In the UK our bus operations have shown that good management, initiatives in marketing and network design, along with attention to detail can strengthen the business even at a time of externally imposed cost increases. We will continue to work with local authorities to find ways of further improving the attractiveness and cost-effectiveness of bus transport.

The sale of our vehicle rental business has allowed us to focus on our core strategy, making sure Arriva is well positioned to benefit from the ongoing liberalisation of transport markets in mainland Europe.

Note to editors

Arriva was the first UK company to implement a strategy to target the ongoing liberalisation of transport markets in mainland Europe. It is the largest UK-based public transport group on the Continent, with revenues in mainland Europe of over e1 billion and operations in Denmark, Germany, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom. With nearly 33,000 employees, Arriva provides more than one billion passenger journeys every year through an extensive range of public transport services including buses, trains, commuter coaches and water buses.

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