Press releases

Leading European passenger transport group Arriva has continued the positive start to the year announced at its AGM on 18 April 2007. Trading is in line with management expectations.

The mainland European market continues to present excellent opportunities for growth and, as the largest UK-based operator in this market, we remain well placed to take advantage of the continuing shift towards liberalisation. Our mainland European business was the subject of a well attended investor briefing in May and is performing as expected.

The year began with the acquisition of 85 per cent of OHE in Lower Saxony, Germany, and of two bus businesses around Prague in the Czech Republic. The integration of all three businesses is progressing well. Today we have announced the formation of a new joint venture in Italy and its acquisition of 49 per cent of bus operator SPT Linea (see separate news release.

Earlier this month we began operations of our first Swedish rail contract, won in February 2006, and are pleased to report a smooth start.  Earlier today we were pleased to announce a pioneering three-year rail contract win in Poland, via a joint venture, which will bring to ten the number of countries in which we operate (see separate news release).

We are currently involved in an extensive range of additional tender opportunities and are evaluating investment and acquisition opportunities in our existing operating areas, and in new territories.

Trading in the UK bus business is strong, despite further year on year increases in the cost of fuel. The regional bus businesses, in particular, are performing well, with route revitalising techniques having a positive effect on customer numbers.  Patronage growth, including that from concessionary fares schemes, has been encouraging.  The draft Local Transport bill has been published which encourages closer partnership working between operators and local authorities to provide even more attractive services. We will be playing our full part in the consultation process.

The operational performance of Arriva Trains Wales (ATW) has continued to make progress, with further consistent service delivery improvements and continued patronage growth.

The outcomes of our bids for the New Cross Country and InterCity East Coast rail franchises in the UK are expected this summer. Success in either of these will dramatically grow Arriva’s position in the UK rail industry, and will provide a platform to build upon the success of ATW. Substantial expenditure associated with these two bids, and that for the East Midlands franchise, will be reflected in our UK Rail division’s interim results.
 
Arriva’s interim results for the six months ending 30 June 2007 are expected to be announced on 6 September 2007.