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26 February 2010
National Express this morning reported pre-tax profits down from £202.4m to £116.2m in the year to 31 December 2009, largely as a result of the loss-making East Coast rail franchise. In a statement to the Stock Exchange, the travel operator revealed that it had dropped to a £83.5m loss when all impairment charges, costs and exceptional items were taken into account, down from a £109m profit in 2008.
Net debt was reduced by £521.9m to £657.9m in the year, mainly through a £375m rights issue.
The company handed back the ailing East Coast franchise to the government in November and will retain its two profitable rail franchises until 2011.
John Devaney, National Express group chairman, said: "Whilst 2010 will be another challenging year in a difficult economic environment, we are focused on delivering margin improvement through cost reduction, continuing strong cash generation and building on the foundations that we have laid in 2009.
With significant scope to improve our business, especially in UK Bus and North America, while building on our successes in Spain and UK Coach, we will drive forward our performance and deliver value for our shareholders."
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