Profits in the UK bus industry fell for the second successive year in 2011/12 according to a new analysis by the TAS Partnership.
The report says that whilst operators have controlled costs, revenue growth was below inflation, implying a sharp real-term fall in markets. Turnover across the 118 bus operators increased by only 0.5% and operating margins fell to 6.7%, compared to 7.5% the year before and 7.9% in 2009.
Commenting, report author Chris Cheek said: "These falls occurred before the reductions in funding in 2012/13, and there are more in prospect for future years. It would not take too many more years of revenue loss to wipe out the current levels of profit – especially as costs (and particularly labour costs) start to rise once more."
Wellglade subsidiary Kinchbus was the most profitable company in the country, wth an operating margin of 22.6%. Next came two Stagecoach subsidiaries, Oxford (Thames Transit Ltd) on 22.1% and Warwickshire (Midland Red South) on 21.9%. Seven out of the top ten were Stagecoach subsidiaries. First West Yorkshire came tenth on 18.7%.
Twenty-three companies had a negative profit margin. Four of the ten least profitable local bus companies in the year are First companies, one is an Arriva firm.
For more, see Local Transport Today out this Friday.
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