Group’s future also looks secure, with order book standing at €18.5bn over the next 15 years
Arriva has published a financial review of 2012 and an update on its operating position and environment.
Group revenue increased by 11.6% on 2011 to €3,757m. EBITDA went up by 30.8% to €425m and gross capital expenditure saw an increase of 56% to €468m.
Substantial growth in operations
The company was successful in winning 11 new contracts, extensions and acquisitions across five countries, bringing in approximately 5,300 new employees and adding 1,200 buses, 127 trains and 375 cars and ambulances. The group was awarded four substantial new contracts in the Netherlands adding €2.5bn to the group order book and strengthening Arriva’s leading position in the market.
Arriva started its 12-year E20 contract in Sweden; the largest integrated multi-modal contract in the country to date, which has doubled it’s presence in the market.
As part of its joint-venture in Hungary, Arriva was awarded two new eight-year bus contracts in Budapest worth €29m a year, which started in May.
The group’s recent acquisition of Veolia Transport Central Europe (VTCE) added a further 6,300 staff across six countries, operating some 3,400 vehicles from 60 depots.
Arriva made a total investment of €468m in 2012 in railway rolling stock and buses; including Europe’s largest ever order of 153 dieselelectric hybrid buses, which will be used both as part of Arriva’s TfL fleet and across its UK regional bus businesses.
The firm now employs almost 56,000 people. Since 2012 Arriva has welcomed 11,600 new employees to the group through a combination of new contract wins, retentions, acquisitions and organic growth.
Overall customer satisfaction at Arriva UK Bus reached an all-time high of 93% in 2012, maintaining a consistent 90% plus rating throughout the past 10 years.
Arriva played a major part in the delivery of transport for the 2012 Olympic and Paralympic Games. More than 600 vehicles and 1,600 drivers were deployed, spread across four major LOCOG contracts. Its joint venture rail operation London Overground carried more than 11 million passengers during the Games and achieved public performance measures of more than 98% for both events.
On December 31, 2012, the group’s order book stood at €18.5bn, which spans 15 years and reflects continued growth in mainland Europe due to new contract wins, retentions and extensions.
Arriva subsequently won a new NHS contract to provide non-emergency patient transport across Greater Manchester, which commenced in April 2013, after its acquisition of Ambuline.
The group’s was recently recognised by the Danish National Audit Office which has stated that the Danish government has saved DKK 303 million (€40 million) over the course of Denmark’s first private rail contract which Arriva has operated since 2003, notwithstanding a 20% increase in train kilometres.
CEO ’s Statement
David Martin, CEO, commented: “2012 has been another year of continued growth and development across our organisation. We’ve strengthened our leadership positions in key established markets, including Sweden, the Netherlands, Denmark and the UK, at the same time as building up our presence in exciting newer markets including Hungary, and more recently across Central and Eastern Europe where we are now the largest international passenger transport operator.
“We have invested significantly in our fleet, spending €468m on new buses and trains. This includes leading edge green vehicles such as the new bio-methane fleet introduced into our UK bus operations.
“This development and continual first-class delivery for our customers is achievable only because of the quality of our people. We now employ almost 56,000 people and in order to ensure that Arriva attracts the strongest candidates, have launched a number of new training and development initiatives aimed at helping them to achieve their full potential as the foundation of our business.
“Looking forward, the opportunities present in passenger transport markets in Europe and beyond are tremendous, and our experience and capability provide Arriva with a unique opportunity. We have a strong track record of delivering positive returns to shareholders and bringing real value to tendering authorities, helping to transform the way in which passenger transport is delivered. In addition to our existing markets, we continue to explore and selectively enter adjacent markets, such as patient transport and open access rail.
“To achieve this we continue to actively pursue a blend of further acquisitions and contract wins, while retaining and growing our existing businesses through organic expansion.”