McGill’s Bus Service, Scotland’s largest independent bus operator, has sparked speculation that it may be considering a flotation on the Stock Market after comments made following the appointment of former Arriva CEO David Martin as a non-executive director. 
In announcing the move, McGill’s says Mr Martin’s “experience of managing flotations” would “prove to be invaluable.” It employs 1,000 staff, operating 400 buses across 110 routes and has depots in Greenock, Barrhead, Blantyre, Inchinnan and Johnstone. It runs buses in Glasgow, Renfrewshire, East Renfrewshire and Inverclyde, as well as North and South Lanarkshire.
Recent years has seen consistent investment, along with expansion. The Greenock-based firm is owned by Arranglen, the investment vehicle of the Easdale family, of whom James Easdale is the main owner.
In its most recent financial results (to 31 December 2015), the firm reported a £38m turnover, along with a 12.5% rise in pre-tax profits to £3.6m, a 9.3% margin. It does not pay dividends to its owners.
Announcing Mr Martin’s appointment, McGill’s Chairman James Easdale says: “McGill’s is entering a new phase with this appointment. David will be invaluable when it comes to new acquisitions, both here in the UK and abroad.
“His experience of managing flotations will also prove to be invaluable.” A flotation would be a way of bringing in new capital investment, by selling parts of the company to investors, via a share issue.
McGill’s Managing Director Ralph Roberts adds: “David Martin is one of the leading figures in the transport industry and he oversaw the international development of Arriva across Europe and facilitated its acquisition by Deutsche Bahn in 2010. He brings with him decades of experience and a vast expertise that will help us as we continue to expand.”
Mr Martin continues to advise the boards of Arriva and DB Group, having stepped down from the CEO role at Arriva in December 2016.
