Midland transport giant National Express today said a business-wide overhaul has driven sales growth in its bus, coach and rail divisions in the UK.

Digbeth-based National Express (NEX) reported that revenues at its rail and coach units increased seven per cent in the six months to June 30, while bus sales were up six per cent.

The bus division has been revamped with new fare structures and improved route management, while coach and rail have been subject to structural changes and new investment.

Cash single fares remained unchanged, but the pricing of travelcards - accounting for 50 per cent of the division’s revenues - increased in order to better match journey demand with supply.

Meanwhile, the company has laid on more routes in busier, usually urban areas, and reduced them in less popular, often rural neighbourhoods.

The company, which earlier this year reached a truce with rebel investor Elliott Advisors after it called for a boardroom shake-up, added it was on course to improve full-year margins across all of its businesses.

Dean Finch, group chief executive, who joined the company from London Underground infrastructure firm Tube Lines, said: “Building on our encouraging revenue growth in the first half year, I expect National Express to deliver a significant improvement in financial performance this year, in line with current market expectations.”

National Express said revenues were up 7 per cent in Spain and up 8 per cent in North America. The company also won new contracts in both these international markets.

The company operates more than 1,600 buses and employs 5,800 people in the West Midlands and Dundee, while its coach operation serves more than 1,000 destinations and employs 1,600 people.

Shares in the group were broadly flat at 250.2p after the announcement.

Gert Zonneveld, analyst at investment bank Panmure Gordon, said: “The group remains on track to achieve a significant increase in its financial performance in 2011.”