Wed, 10 Apr 2013 | BUSINESS SALE
FirstGroup has sold off a total of eight bus depots as part of its efforts to generate £100 million in disposals.
All of the depots were based in London and were sold to two different bus operating companies. London firm Metroline is set to buy the depots in Uxbridge, Aplerton, Greenford, Hayes and Willesden Junction for £57.5 million. FirstGroup's 1,700 staff and 494 vehicles linked to the depots will be transferred across.
Transit Systems Group, an Australian firm, is set to purchase the sites at Lea Interchange, Westbourne Park and Atlas Road, along with their 400 vehicles and 1,500 staff for £21.3 million.
Managing director of First's UK bus operations, Giles Fearnley, commented: “The sale of these operations marks further progress in our programme to reposition our UK Bus portfolio, recover performance and equip the business to achieve sustainable revenue and patronage growth.”
He added that the decision to sell is a “business driven one” and is not a reflection on the performance and commitment of individual employees in the company. The company is set to focus its attention on other areas that offer greater potential for growth; given the crowded London market and over-arching control of Transport for London, the capital does not appear to be one of the best areas for FirstGroup.
Shares in the company were up on the news that the firm had organised a sale for its depots. However, analysts have suggested that there is still a long way to go before First manages to fully turn its fortunes around. Trading in the last quarter of 2012 showed an increase of 2.4 per cent in the firm's revenues for its UK bus business.
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