National Express is to exit the UK rail sector in favour of “more lucrative” investment opportunities abroad. In its full-year results statement, the public-transport group said that it will use some of the £108 million paid by Trenitalia last month for the c2c train operating franchise to pay off debt rather than re-invest in the railways.

CEO Dean Finch said: “National Express is very proud of its record on c2c, having made it consistently the best-performing railway in the UK.

“We hand over the franchise with a record number of passengers, the period and annual punctuality record and its highest customer-satisfaction scores for three years”.

However, he added: “The current UK rail market is not as attractive as our other growth opportunities. By using the proceeds from the sale to pay down debt, while assessing where best to invest, I firmly believe that we have a real opportunity to generate significant shareholder value.

“Despite significant organic growth on c2c, the commitments to substantial investment in fleet and property — plus a growing premium — were emerging as a risk.

“By moving swiftly and firmly, we have both removed this risk and replaced it with the opportunity for further targeted investment.”

Mr Finch confirmed that the company remains committed to its German rail operations.