Arriva doing well despite the recession
Transport operator Arriva are showing positive signs of weathering the recession after their trading report for the first 9 months of this year were released recently. Despite the increase in fuel prices, which Arriva estimate will set them back an extra £60 million this year, the British bus and rail provider is displaying encouraging results which are being described as “better than expected.”
In an attempt to beat the rising fuel costs, Arriva have already bought up their fuel for 2010 as prices are expected to continue to increase. It is hoped that this forward-thinking will save the bus operator £30 million next year.
Arriva are reporting a 4.9% growth in revenues for its UK bus division for the first 9 months of this year up until September. They say, “The business development environment remains positive with numerous tendering opportunities under evaluation in the huge European public transport market. The market continues to present Arriva with opportunities for long-term growth.”
The presence of Arriva in Europe is already significant with transport routes in operation in 13 different countries across Europe.
However shares in Arriva have dropped by a quarter throughout the year with the business now being valued at an estimated £870 million.