National Express reports good start to year, boosted by US buses Revenue from its North American school bus business was up by 18pc, after it bought operator Petermann in May last year, management said. Underlying revenue for the division was broadly flat, however, partly because more days of business were lost to the winter weather. At its UK coach business, the group reported passenger numbers were up by 7pc, which it said reflected its competitive prices and introduction of faster, more direct services. The company expects to benefit from new contracts to operate services between London Luton Airport and London's Victoria station, as well as selling its tickets through low-cost airline Ryanair. At its rail business c2c, which operates around London, the company said it had enjoyed good revenue growth but did not break out figures. In austerity-hit Spain, National Express said its urban bus business increased like-for-like revenues by 5pc, offsetting a 5pc fall in revenues at its intercity coach business, which has faced competition from discounted train fares. National Express last month launched city2city, a German coach network, and said its initial routes have already seen "promising demand." The company said its financial position remained strong, and that it expects its full-year capital investment to be around £100m after spending around £40m in the first quarter. Dean Finch, chief executive, said: "We have made a positive start to the year, continuing to deliver a high level of value and service to our customers and building our new business pipeline through regular contract wins." Analysts at Morgan Stanley predicted pre-tax profit would be £143.1m for 2013, before starting to rise again. They saw the growth rates reported by the company as "reasonable given tough comparatives in certain divisions as well as a difficult quarter weather-wise."