TRANSPORT group National Express has geared up for its showdown with a rebel shareholder with a 30% leap in quarterly profits.
The bus, coach and rail operator said the performance for the three months to March 31, which included a 5% rise in revenues, supported its current strategy in the face of a campaign by Elliott Advisors for radical change.
Matters will come to a head next Tuesday when the American hedge fund, which owns about 17.5% of National Express, will ask fellow shareholders to back the election of three new non-executive directors.
It believes the appointments will re-invigorate the board while it attempts to garner support for a shift in the company’s strategy.
The group reported a 3% increase in sales, including 6% growth in its core express network, while bus services in the West Midlands logged a 4% rise in revenues despite a decline in passenger numbers.