Day off today and it rained, so thought I would spend an hour or two looking at financial results for bus companies (and First opcos in particular). Interesting and enlightening.
As always, the published accounts are only indicative of the underlying position, but trends do shed light on how each opco is doing. These accounts are up to the end of March 2020 so largely reflect the position pre COVID and need to be read in that light.
Highlights are continued improvement in margins in Glasgow (over half the total First Bus profit that year came from the two Glasgow companies!), Aberdeen (back into profit), Eastern Counties (quite a turn round story here), Manchester (though still loss-making it appears that the sales of Wigan, Bolton and Queens Rd has helped), Worcester (back into profit!), and Potteries.
Some worrying trends with Bristol (margin more than halved), Essex (back into loss again), West Yorkshire (margin still healthy but down by a third), and Cymru (which to be fair has always been highly profitable but now just a bit less so).
Now on to the basket cases. South Yorkshire was still struggling, though I think new management will be having an effect there. Scotland East has been hit by competition, and the start up costs of the tours in Edinburgh but is seeing losses in excess of half its turnover. Clearly unsustainable; I'm not familiar with the territory but hopefully management actions can turn this around soon.
Overall First Bus margin is 3.9%, down slightly from 4.1% the previous year but well up on 2.9% the year before.
For comparison, I looked at a couple of Go Ahead and a couple of Stagecoach opcos. Their accounts cover a period a couple of months different to First, so not strictly comparable. In addition, groups may treat central costs differently so compaisons are difficult but the treands from year to year are revealing.
Go South Coast showed a big decline in operating margin (down by 40%), but also a massive extraordinary item, which I suspect relates to the loss of NX contracts and the consequent need to dispose of the coaches at a loss, which reduces the margin there to 2.4%. Plymouth went backwards into a small loss, and I doubt the Cornwall contract will help the next year's results much.
Stagecoach South (10.2%) show margins most UK opcos in any group would love to have, while South West (aka Devon) was back into profit last year, and both improved margins.
As always, comes with caveats but discuss!!