Thu, 24 May 2012 | DIVISION SALE
FirstGroup has decided to sell off another chunk of its underperforming UK bus operations due to the effects of public spending cuts and increasing fuel costs.
Business has been particularly slow in the North and Scotland, where two-thirds of its sales are generated, with a distinct lack of customers waiting at bus stops. The increase in costs, however, has been reflected in the rise in ticket prices, with customers in Bath and Weston-super-Mare, for example, suffering a 70 per cent increase in January.
Its US business Greyhound Express, which runs intercity coaches and a school bus service, has seen tremendous growth on the other hand.
Aberdeen-based FirstGroup runs about 8,000 buses in 40 towns and cities throughout the UK. The UK operations were the only part of the group not to have matched expectations. Operating profit fell by almost 10 per cent to £134.4 million.
Despite the disappointing financial results chief executive Tim O’Toole is confident that the sale will attract interest. He told the Guardian: “We were surprised in January by our very poor yield after higher fares. We’ll be selling certain operations – based on the depots we’ve sold this year we think there is an appetite for this.”
The firm has already sold off its business in North Devon and King’s Lynn and a large London depot in order to remain in profits.
Previous story - Stagecoach purchase of FirstGroup comes under spotlight
The business operates in the UK with an international presence and specialises in providing comprehensive recruitment solutions to customers in the technical sector.
The company has traded for 16 years, based in the Northwest and operating nationally providing temporary staff to large corporate clients.
The company is well-established and operates from a third party owned quarry in Lincolnshire. The business quarries, manufactures and supplies a range of aggregate products, gabion stone and provides associated products and services throughout the Un...
14
|
Mar
|
Treforys Tiny Tots Day Nursery undergoes MBO | MBO/MBI
Swansea-based Treforys Tiny Tots Day Nursery has undergone a...
13
|
Mar
|
Pest Control Supermarket selects Employee Ownership | BUSINESS SALE
Sheffield-based Pest Control Supermarket.com has transitione...
13
|
Mar
|
Care home firm Strong Life aiming to double in size following deal | DIVISION SALE
Yorkshire-based care home company Strong Life Care has bough...
29
|
Jan
|
FirstGroup acquires York Pullman Bus Company | BUSINESS SALE
Aberdeen-based transport firm FirstGroup has acquired York P...
10
|
Apr
|
FirstGroup sells off bus depots | BUSINESS SALE
FirstGroup has sold off a total of eight bus depots as part ...
03
|
May
|
Stagecoach purchase of FirstGroup comes under spotlight | BUSINESS SALE
The proposed purchase by Perth-based Stagecoach of its rival...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.