GROUP STRATEGY
Introduction
The Directors are pleased to present the Operating and Financial Review (“OFR”) of National Express Group PLC for the year ended 31 December 2006. This OFR describes the main trends and factors underlying our performance and position during the year, as well as the main trends and factors likely to affect our future development, performance and position. Throughout this Annual Report and Accounts, National Express Group PLC is referred to as “the Company” and the Group, of which it is the ultimate parent company, is referred to as “the Group”.
Group Strategy
The Group’s objective is to deliver safe, reliable and innovative integrated transport products and services and in doing so to generate shareholder value over the longer term. Since joining the Group as Chief Executive in September, Richard Bowker has reviewed the Group businesses and with the Board set out the Group’s strategy as follows:
- We have a strong and diversified portfolio of businesses where the Group’s strengths can be utilised through acquisitions and new developments in our core markets, both in the UK and overseas. We are now actively seeking opportunities to do this and have a number of potential opportunities under consideration;
- We are a leading provider of integrated transport solutions both in the UK and other geographies. Our long term commitment to rail is demonstrated in our submissions for the East Midlands and New Cross Country franchise bids and, later this year, the Inter City East Coast;
- We will invest in the necessary products and systems to maximise the value of the customer base. We believe through greater customer relationship management and marketing we can develop this relationship further and, by providing a level of service and innovation that customers want, stimulate repeat business; and
- We will maintain the efficiency of our balance sheet to give us greater flexibility and greater capacity for acquisitions whilst ensuring our investment strategy is driven by longterm value creation.
