Equipmake plans to rationalise its electric bus repower work by focusing those efforts on what it terms “a limited number of platforms.” That move is expected to improve gross margins, according to a trading update for the year to 31 May.
The Snetterton business has won contracts to repower various coaches and buses from diesel to battery-electric. Its most recent debut in that field is conversion of Wrightbus StreetDeck models, where significant volume has been anticipated.
Equipmake says that such successes have demonstrated the “quality, reliability and significant benefits” of its repower product via real-world operation on various platforms. It recently won a contract with Golden Tours to repower 10 Volvo B5TL open-toppers in that operator’s London fleet.
While specific vehicle types to form part of the rationalisation are not disclosed, Equipmake says in the trading update that bus repower income scaled rapidly during the year in question.
Of the company’s overall revenues of an expected approximately £8.1 million, £3.9 million came from repower. Respective figures for the previous year were £5.1 million and £900,000.
However, the rapid upscale of repower led to some unanticipated and under-estimated costs to ensure that agreed delivery timetables were met, the business continues. It adds that the repower process is labour intensive when working at modest volume and that recipient vehicles can be of “inconsistent quality.”
On the future of repower, Equipmake expects revenues from that to “plateau and then reduce” because it anticipates material demand growth for the standalone supply of higher-margin components and powertrain solutions.
That will be a key area of business going forward and Equipmake “recognises the need to focus aggressively on the most strategically important and financially rewarding of markets,” it says.
Unknown is how the revised approach to repower by Equipmake will impact previously planned processing of diesel coaches to battery-electric.
It began that work on a Van Hool T917 Altano owned by Westway Coaches some time ago and expected further coach projects to come on stream. But no further information on the Altano project has since been forthcoming and the coach concerned is understood to not yet have returned to the road in repowered form.
