Equipmake plans to encourage a move of its existing comprehensive battery-electric bus repower work towards the supply of the driveline and associated equipment for installation by operators or their third-party contractors.
That represents a shift from the supplier’s current approach of carrying out the repower work in full itself. Equipmake earlier outlined a policy of rationalising bus repower to a limited number of platforms, a strategy that is says will improve overall margins.
Such a position is detailed in preliminary results for the year ending 31 May. Equipmake’s largest increase in revenue over that period came from the bus repowering line, although that activity is labour-intensive when carried out at modest volumes. What is termed “inconsistent quality” in recipient vehicles is also identified as a challenge.
Nevertheless, CEO Ian Foley says that Equipmake believes it has “addressed the cost issues that we experienced in bus repowering during the year by now securing substantially lower cost batteries and other selected components through alternative suppliers.”
Bus repower has proved to be what Non-Executive Chairman Clive Scrivener says is “a very important demonstrator of our products.” However, revenues from that are expected to materially reduce in the current financial year as Equipmake promotes the move to driveline supply.
Bus repower generated almost £3.9 million in revenue for Equipmake in the 12 months to 31 May via delivery of 26 completed vehicles, although that work returned a loss of £2.9 million due to costs incurred as efforts were scaled up quickly in the second half of the year.
“These issues are believed to have been addressed and indeed bus repowering is not expected to be a core activity going forward,” says Chief Financial Officer Tony Ratcliffe.
Although future driveline supply to facilitate the repower of buses appears secure, nothing is publicly known about Equipmake’s ongoing approach to coach repowering.
It commenced that work using a Van Hool T917 of Westway Coaches during early 2023 and with plans to repower more coaches. Nothing more has been heard during 2024 and Equipmake has not responded to enquiries about the future of the coach project.
