The Go-Ahead Group has purchased coach operators Compass Royston, Esk Valley, Fourway Coaches and Procters Coaches in a significant expansion both of its business in Yorkshire and County Durham, and of its reach in the coach industry.
200 staff members, 140 vehicles and five depots come with the deal. Fourway Coaches’ inclusion takes Go-Ahead into West Yorkshire, where bus services will be franchised over coming years.
Each business will remain a separate trading entity with its own O-Licence, but all will fall under the responsibility of Go-Ahead subsidiary East Yorkshire Buses, led by Managing Director Ben Gilligan. The sales follow other surprise coach operator purchases by Go-Ahead, including that of Cotswolds business Pulhams Coaches in mid-2023.
Leases on property used by the four acquired operators in Yorkshire and County Durham will be maintained by Go-Ahead, including that on the Fourway Coaches base in Cleckheaton which is shared with Temsa Sales UK. The Procters Coach and Bus Sales business does not form part of the sale and will remain in the ownership of Kevin Procter.
Speaking about the sale of his operating businesses to Go-Ahead, Mr Procter comments: “We are proud of everything we have achieved in the past 30 years. I turned my father’s taxi company into Procters Coaches, starting with one minibus and one large coach.
“We have been on a journey of growth and innovation, and we are excited to hand over to the trusted Go-Ahead Group. We are fully supportive of Go-Ahead’s commitment to our team and its approach to driving positive change in the UK coach market for local communities, customers, and the region.”
Mr Gilligan notes that the four coach operators’ strong contracted revenue bases were attractive to Go-Ahead. The group sees scope to further expand the businesses around contracts, including in the home-to-school market.
He adds that Go-Ahead’s growing presence in the coach market gives scope for those arms across England to collaborate more closely. “At the moment, we all subcontract work, and there are opportunities to drive some efficiency there,” Mr Gilligan continues.
Further new coaches are expected to be delivered across the four businesses involved in the most recent deal. Mr Gilligan says Go-Ahead recognises a need to maintain that investment on “a drip feed” basis.
The buyer will not seek to consolidate the purchased operations with its East Yorkshire Coaches undertaking. That has seen a shift to contracted revenue in recent years, and Mr Gilligan is a further industry figure to observe that the coach market is currently strong and enjoying good rates.
On entry into West Yorkshire by Go-Ahead, he acknowledges that the regulatory model for buses there is changing, although Fourway Coaches does not currently run any local services in the region.
“We recognise that there is an opportunity in West Yorkshire, but that was not the sole reason for us buying [Fourway],” Mr Gilligan continues.
“Fourway is a company that has been transformed over the past three to four years. It has a much better portfolio of work, and it has some good, long-term contractual relationships. That is the more immediate importance because it represents current revenue.
“But it brings us into an area where we have not previously operated. And we know that there are opportunities there in the longer-term. This is a very exciting time for us, and it is a great step forward for Go-Ahead and East Yorkshire Buses.”
