We are addressing the profitability of our trains division

Michael Davies National Express

Pre tax profits fell more than 90% to £14.5m ($22.2m).

But profits before exceptional costs painted a slightly better picture - they fell to £37.2m from £60.5m the previous year.

The chairman Michael Davies described it as "a challenging six months".

National Express operates several rail franchises across the UK, including Gatwick Express, Scotrail and Midland Mainline.

It was one of the company's trains that crashed at Potters Bar in May, although the firm was not implicated in the accident.

Fare evasion

National Express said that its performance had been affected by maintenance and upgrading work across the rail network and by industrial action.

"We are addressing the profitability of our trains division and the on-going issues relating to the rail infrastructure," said Mr Davies.

He added that the company was focusing on trying to attract passengers back onto its trains.

National Express said its bus business had been hit by high insurance costs and the company had also been hurt by fare evasion on its trains and trams in Australia.