The combined deficit of the National Express defined benefit pension schemes has risen to £124.9m, according to its half-year report.

Between 31 December 2018 and 30 June 2019, the overall deficit rose by £8.1m, primarily due to a reduction in assets and increase in liabilities.

National Express has two principal DB schemes, the UK Group Scheme, which is closed to future accrual, and the West Midlands Bus scheme, which remains open to accrual for existing active members.

The UK Group scheme was posted a £14.8m surplus, down £0.1m since December, while the West Midlands Bus scheme was in £134.6m of deficit, up by £127.3m during the same period.

National Express' other schemes, including a small, legacy rail DB scheme, had an overall deficit of £5.1m.

The combined assets of the firms DB schemes totalled £14.8m, down from £49.6m in December, while its liabilities increased, from £119.7m to £139.7m.

The total pension operating costs for the six months to 30 June 2019 was £4.8m and the company plans to pay deficit repayments of around £8m per annum until 2020.

Actuarial losses on its DB pension schemes totalled £9.3m.

In October 2018, National Express completed a buy-in with Rothesay Life, securing 100 per cent of the future obligations of its UK Group Scheme, for an undisclosed amount.

Commenting on the report, National Express chief executive, Dean Finch, said: "I am delighted to report another record set of results, primarily driven by organic revenue, profit and margin growth in every division.

"Our disciplined diversification means we have a portfolio of businesses that enable global best-practice and efficiency to be shared, while allowing local growth opportunities to be pursued.

“Our strong cash generation continues to allow investment in new technology and strategic acquisitions to drive organic growth and new market expansion.”

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