Higher costs hit Arriva profits
BBC News: 6 September 2007
Higher interest rates, fuel bills and the costs of bidding for acquisitions and new franchises hit Arriva's profits in the first six months of this year.
The Cross Country franchise covers 1,600 miles
The transport group's pre-tax profit for the half-year to 30 June fell to £47.3m from £48m for a year earlier.
This year, Arriva has won the Cross Country rail franchise from Virgin as well as making a number of acquisitions in continental Europe.
The Cross Country franchise runs from Scotland to the south of England.
The new Cross Country deal will also include Nottingham-Cardiff and Birmingham-Stansted services.
European acquisitions include 85% of a train company in Lower Saxony in Germany, a bus business near Prague in the Czech Republic, and a bus company in the Spanish capital, Madrid.
See also:
Arriva poised to bid for Chiltern
Guardian: September 7, 2007
Dan Milmo
Arriva, recent winner of the Cross Country rail franchise, stated its interest yesterday in acquiring its rival operator Chiltern Railways. The franchise, which operates from London-Marylebone to Birmingham and Stratford-upon-Avon, was named Operator of the Year at the National Rail Awards yesterday. Chiltern's owner, the fund manager Henderson, has appointed KPMG to advise on the potential sale of the business, which it inherited in last year's £950m acquisition of John Laing.
David Martin, Arriva chief executive, said: "If a formal sale process started then clearly we would be interested and our investors would be disappointed if we were not interested." Arriva announced a small increase in first-half operating profit to £52.9m yesterday.