PRE-CLOSE TRADING UPDATE
Overall trading
The Group provided an update on trading in respect of the third quarter of its financial year on 12 January 2012. Since then overall trading for the Group has been in line with management's expectations and we remain on course to achieve overall earnings and cash targets for the year.
Our portfolio continues to provide diversity with separate businesses moving at different stages through the economic cycle. Our three North American businesses continue to demonstrate progress and the US macro economic outlook is showing positive signs. In UK Rail, against a background of robust revenue growth we are now at an inflection point in the Government's re-franchising programme. Lower economic activity, particularly in Scotland and the North of England, is creating pressure on the performance of our UK Bus business.
During the year we have continued to drive cash generation to support capital investment, debt reduction and dividend growth of 7%, in line with our current commitment. As previously indicated, we expect cash generation for the year to be within the range of £100m to £115m and a net debt to EBITDA ratio of 2.5x at 31 March 2012.
