Dear shareholders

There can be no doubt that 2009 was a challenging year for National Express – for its people, its customers and, above all, its shareholders. We faced difficult decisions, some setbacks, a deep recession and significant uncertainty over the Group’s future direction. Nevertheless, we were able to remove our loss-making business, stabilise profitability, successfully refinance much of our debt and draw a line under a difficult period for the Group.


With strong shareholder support, we have created a firm platform from which we can develop. We have an appropriate capital structure with good funding support, we retain robust market positions in our businesses from which to grow sustainably, we have a strong operational capability and cost focus from which to drive margins, and we have restored our cash generative ability.

Our new Chief Executive, Dean Finch, who joined us in February 2010, has a track record of delivery in the transport industry. He will lead our management team in implementing and refining our strategy – improving margins, driving cash and delivering selective, value-creating growth.

I would like to thank our team for facing and weathering the challenges of 2009 – a series of events that few would expect to meet in a single year. Each of our 41,000 employees has focused on the task at hand, delivering results in difficult market conditions, safely and with complete focus on pleasing our customers. I would also like to thank my Board colleagues for their leadership and resolute approach, particularly during a time of personnel change at the highest level.

But above all, I would like to thank you, our shareholders, for your continuing support. The success of the Rights Issue, and the subsequent oversubscribed bond issue to debtholders, demonstrate our stakeholders’ commitment to the Group. I have no doubt that National Express is a robust company, with a strong future. Whilst the new year is bound to present new issues and markets will remain difficult, the Group can make good progress, building on the platform created from the challenges we successfully faced in 2009.

Yours sincerely,

John Devaney Chairman

John Devaney
Chairman