Press releases

Leading European transport group Arriva plc has today announced interim results for the six months to 30 June 2009.

Highlights

Robust financial performance

• Group revenue* up 10 per cent to £1,640 million
• Operating profit* increased four per cent to £88.7 million despite £18 million higher fuel cost
• EBITDA up 11 per cent to £165.6 million

Tight management control yielding benefits across the business

• Strong UK Bus performance: targeted mileage reductions improving yield per mile
• Business development and improvement initiatives in Mainland Europe
• Cost savings and improved operational performance in UK Trains
• 17 per cent reduction in central costs
• Debt reduced and additional financing secured through to 2012

Resilient earnings supporting higher dividend

• Adjusted earnings per share** 23.2 pence (2008: 25.9 pence per share**)
• Interim dividend up five per cent to 6.46 pence per share

David Martin, chief executive, commented: “Our underlying financial performance is strong in a challenging environment. The high fuel costs in 2009, a legacy of the peak in the oil price, will reverse substantially in 2010. Tight management of controllable costs across the group, and the benefits of our business development and efficiency initiatives, have contributed greatly to offsetting the increase in fuel costs.

“Our passenger revenues in the UK have grown despite the recession, though at a slower rate recently. In mainland Europe, we were delighted to win significant new work, the most recent example being the award of the largest regional rail contract to be won by the private sector in Germany to date, and there continue to be further growth opportunities for tendered work.

"Although the short-term outlook for passenger revenue growth is difficult to predict, we are confident that the group will continue to demonstrate its combination of resilience and growth potential. This is reflected in our decision to increase the interim dividend by five per cent."

* Before goodwill impairment and intangible asset amortisation, and including share of associated companies’ revenue and operating profit

** Before goodwill impairment, intangible asset amortisation and exceptional items

Enquiries:

Arriva plc	0191 520 4000
David Martin, chief executive
Steve Lonsdale, group finance director
Simon Craven, director – communications
Tulchan Communications	020 7353 4200
Stephen Malthouse

Notes to editors:

• Arriva is one of the largest private sector providers of passenger transport in Europe, employing more than 44,000 people (including share of associate companies) and providing more than one billion passenger journeys every year.

• Arriva provides transport services including buses, trains, commuter coaches and water buses, and operates in 12 European countries: Czech Republic, Denmark, Germany, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden and the UK.

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View Arriva Interim Results in full (PDF)