National Express in the money

National Express today revealed bumper profits - in the week that it announced an inflation-busting rise on West Midland buses.

Its annual profits are expected to hit £154 million - £13 million more than it expected. And it says it wants to maintain the increase in income by bringing in big rises in fares, which will come into effect in the New Year.

The price of a single National Express West Midlands fare will go up by 5.8 per cent - almost twice the inflation rate - from £1.70 to £1.80 on January 2.

The Birmingham-based company says the increases cover rising fuel and insurance costs.

A spokesman said the better than expected profits will help it invest in the region's bus network next year, including the introduction of 120 new vehicles as part of a five-year plan of improvements.

It revealed today that improvement work on the bus service has involved cutting back on quieter routes while adding to busier runs.

As a result revenues from its bus service were now growing again in the West Midlands, up 1.5 per cent since July.

The company, which is based in Mill Lane, Digbeth, employs around 5,500 people across the West Midlands, with 1,600 buses and 450 routes.

National Express chief executive Dean Finch added: "This is now a much improved business, back on a sound footing and with a strengthened management team, delivering stronger margins and better customer service.

"We will complete our business recovery programme ahead of schedule, and will look to grow our bus, coach and rail portfolio."

By Simon Penfold