National Express Can Get Back on the Road

The Week: Morningstar columnist Rodney Hobson looks how two companies, National Express and Dunelm, can adjust when life gets back to normal

Rodney Hobson 17 April, 2020 | 9:14AM

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Will life ever be the same again? Yes, except where it is different. I believe that the UK, like other countries, will try to get back to normal. However, life cannot be quite the same after such a dramatic upheaval and investors should be considering which companies and sectors will bounce back and which may be consigned to history.

A good case in point is coach operator National Express (NEX), which had been doing well, as its trading update indicated. In the first two months of this year, revenue grew an impressive 17% with all parts of the business trading strongly. March, not surprisingly, saw “a significant fall in revenue” but even so group revenue rose 8.9% for the quarter as a whole, boosted by an 87% leap in revenue from German Rail after the inclusion of new contracts. UK figures reflect the onset of social isolation; North America was still ahead but much worse is to come there.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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