Plymouth bus fares under review as operator reports 'solid' trading figures
THE introduction of smartcard technology is being credited for "solid" trading at the transport giant which bought Plymouth Citybus – but it warned it will be reviewing fares.
The Go-Ahead Group Plc, which paid £19million for Citybus in December 2009, said its third quarter, from January to this week, has done nothing to dent predictions for its year end on June 30.
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But it said it would have to look at pricing and cost efficiencies during the next quarter.
In February, the firm's half-year operating profit stood at £51.7million, with its deregulated bus sector, which includes Citybus, seeing year-on-year six-month operating profit fall of £500,000 to £18million.
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In an interim management statement, Go-ahead said passengers continue to take advantage of "value for money" period passes and smartcards.
Last October, The Herald reported that since acquiring Citybus, Go-Ahead had invested more than £50,000 in new technology including upgrading websites to ensure easier access to information, and the introduction of on-line purchase of key cards, offering discounted weekly, monthly and annual travel.
The interim statement said bringing in smartcards had, "as expected", reduced the average yield per customer.
But the firm stressed the move had provided the opportunity for long-term growth.
However, Go-ahead also said that following the Government's decision to reduce funding through the Bus Service Operators' Grant, and as a result of increasing fuel prices, its bus companies will be reviewing fares and targeting cost efficiencies in the next three months.
The firm, which has acquired two bus companies and a depot since February, said the revenue of its bus operation, excluding London, increased by about four per cent and passenger numbers were up about three per cent, with stronger growth in fare-paying passengers being partly offset by recent a weaker concessionary performance.
But, due to the acquisitions in the bus division, year end net debt is expected to be higher than previously anticipated, at around £95million.
David Brown, group chief executive, said: "I am pleased to report continued growth in both our bus and rail divisions.
"In bus, our focus of operating in urban areas, predominantly in the South East, combined with our strategy of local management and marketing has continued to deliver growth.
"Our sector leading London bus business performed strongly in the quarter and we were pleased to announce the acquisition of the Northumberland Park depot in North London, demonstrating our long term confidence in this market."
The firm's rail division has also performed well, and it has been shortlisted for the Thameslink franchise.
The group said it remains in a good financial position with strong cash generation and a robust balance sheet.
Mr Brown said: "Whilst we continue to be cautious about the wider economic outlook, we remain confident that we will deliver a full year result in line with our expectations."
Comments
by shipmateron
Sunday, April 29 2012, 11:10PM
“I think it's a valid point that manufacturers of calorie controlled biscuits are unlikely to have the experience, knowledge or desire to drive forward an efficient and customer focused bus service. I mean you wouldn't put Mr Kipling in charge of the gas and electricity, would you?”
by jannerflight
Sunday, April 29 2012, 10:43PM
“Theres no good you lot moaning about Citybus you had your chance to save it from these profit making vultures that is Go Ahead but the majority of you didnt want to know. In some cases you thought Citybus would be better of if bought by a private company. You only have yourselves to blame. Apparently worse is to come.”
by shipmateron
Sunday, April 29 2012, 10:13PM
“It's called work-life balance mate. Try it sometime, you might cheer up a bit.”
by fancyabrew
Sunday, April 29 2012, 10:04PM
“I do actually wonder why I do bother getting out of bed at 6am and going to work in Plymouth, getting back home at 715pm when the beer garden next to my house is full everyday with the same old faces drinking at my expense”
by shipmateron
Sunday, April 29 2012, 9:37PM
“That's very ruddy expensive fancyabrew, but how come you are not allowed to sign on at your local DSS? Surely there has been some sort of administrative error that once corrected would solve your problem?”
by fancyabrew
Sunday, April 29 2012, 9:23PM
“since Jan my westengreyhound fare from SE cornwall in to Plymouth has gone up from £6.50 to £8!”
by cashlift
Sunday, April 29 2012, 8:36PM
“puffing billy , you are making it up , city bus returned a decent profit each year , where did yiu get this rubbish info from? our are you Pengellys brother ??”
by superwoman123
Sunday, April 29 2012, 7:36PM
“our city bus ! what a joke people need to speak out and do something city bus is by far the worst and most expensive around i never use them i drive to park and ride and dropping my children to school by car is cheaper than buse,s anyway
do these bus companys not realize if the fare were cheaper and they gave better deals and actualy better service people would use them more alot more instead of seeing off the people whi sadly have no choice but to get a bus!! city bus you are rubbish !!!”
by Workitout
Saturday, April 28 2012, 8:09PM
“Public Transport is the way ahead. Cars will be too expensive. Fuel prices will increase. People will have to walk again. What a Novelty!!!”
by John_Ply
Saturday, April 28 2012, 1:41PM
“I agree with, 'jannerflight'. Citybus was making a profit and can distinctly remember reading stories about this in The Evening Herald. While some people may now be noticing that other bus companies, may have cheaper fares at the present time, they may be failing to realise, that if any of these companies leap out in front with higher price fares, then they are leading the way, for the other bus companies to increase their fares in line with demand.
In some cases, a bus service can be regarded as a necessity. In these cases, a bus service can also be regarded as a monopoly and therefore demand is assured. I am a car driver and I sometimes use the bus service. I am not, or have been employed by a bus company, but could foresee these price rises happening. I was there when the peaceful protest's were taking place. At the council meeting, I counted about 6 people in civilian clothing (as opposed to CityBus employees). Bus users now protesting, should have filled the Piazza and the area around the Law Courts and made your voice heard. I feel sure that if this had been done, then your voice may have counted for something. Particularly if the numbers were so great, so as to make councillors fear, that their seats on the council may be in jeopardy
It seems to me, to be the same old apathy, where everyone is thinking someone else will do something on my behalf. People should realise that, if everyone has this mentality, then knowone does nothing. The fact that CityBus was owned by the council, made this bus company accountable to the Voters of Plymouth at the Council Elections. It also had an effect to make the CityBus run at a profit to such an extent as not to be excessive and be of benefit to the citizens of Plymouth. There was also the added advantage, that profit made was given to the council, so as to benefit the council tax payers of Plymouth. This revenue to the council is now lost forever. A point that I will not forget, at the forthcoming elections. With CityBus being owned by the council, the competion would find it hard to increase fares, far in excess of CityBus. But now that CityBus has been privatised, I fear that there will be no stopping large fare increases now over the course of time.
Now this bus company is accountable only to it's shareholders who's only motive is profit. I am not disputing any person's right to complain, I feel that that you are trying to close the stable door after the horse has bolted. ………………..IT'S TO LATE.!”