Press releases

Speaking today at Arriva plc’s Annual General Meeting, Sir Richard Broadbent, chairman, said:

When we announced our full year financial results for the year ended 31 December 2006, we reported on a sound performance in changing times. Further growth in mainland Europe, a strong performance from UK Bus, both in London and the regions, and an excellent improvement in operational performance at Arriva Trains, underpinned solid financial performance.

Passenger transport markets across Europe continue to open to competition and it is against this background that our vision is to become Europe’s leading passenger transport group. We pursue opportunities for growth by tender gains and by acquisition, when it makes financial sense, in order to broaden and deepen our footprint in these evolving markets.

The execution of our ongoing strategy has continued this year under David Martin’s leadership. Taking over as chief executive at last year’s AGM, he has provided continuity and expertise in maximising our existing opportunities, as well as seeking out new ones.

We are pleased with the development of our existing businesses, and the start of 2007 has already witnessed the continuation of our growth in mainland Europe. Germany remains a key area of development, and in March 2007 we built upon our strong position with the purchase of a majority stake in Osthannoversche Eisenbahnen AG (OHE), a public transport group based in Hannover. In January we completed the acquisition of Bosak Bus s.r.o in the Czech Republic, increasing our presence around Prague, and commenced an eight-year bus contract in southern Holland. In June 2007 we will start a nine-year contract to operate regional train services in southern Sweden. Two further rail contracts commence in Germany in December 2007, with a third contract from December 2009, and we have recently won a further 10-year rail contract commencing in December 2008, expanding our presence in Brandenburg. We await the outcome of a number of tender submissions, including those for the Oresund rail link between Sweden and Denmark.

We also anticipate further developments in the UK bus market. Growth in London is set to continue and we are encouraged by the government’s initiatives to promote public transport in the regions in a bid to deal with the increasing public concerns over congestion and the environment.

In the UK rail division, we look forward to the outcome of the two rail franchise bids we have already submitted to the Department for Transport – East Midlands and Cross Country. In addition, we are currently developing our bid for the InterCity East Coast franchise, the incremental costs of which will be borne in this year’s results.  Success in any of these will transform our position in the market.

Overall, the Group has made a positive start to the year in further developing its business. Trading is in line with management expectations.