Bus industry profits rose for the second consecutive year in 2014/15, according to new analysis by Passenger Transport Monitor.
Its 122-page report Bus Industry Performance 2016 presents the results of its annual analysis of 116 local bus companies around Great Britain, in the 25th year of the Bus Industry Monitor project.
Revenue grew by 3.8% at a time when inflation was running at around 1%. Operating costs rose by 2.8%.
At the same time, the report provides an update of the levels of profits operators need to meet their financial obligations and invest for the future.
It reveals that the required margins outside London are between 10% and 12%; well above the levels currently being earned.
Actual operating margins recovered to 7.6%, up from 6.7% in the previous year, and 6.2% in the year before that.
Turnover across the companies analysed rose to £5.708bn while operating costs reached £5,275bn. Operating profit was £433m, up by 17.3% from last year’s £369m.
Companies outside London saw a smaller 1.4% increase in turnover, taking the total to £3.798bn, while the rise in operating costs was restricted to 0.5% to £3,477bn.
Operating profit was 12.7% higher at £321m, and operating margins improved to 8.5% (2013/14: 7.6%, 2012/13: 7.2%, 2011/12: 8.8%).
Report Editor Chris Cheek says: “Despite public spending cuts and other pressures, the financial situation seems to have been stabilised in 2014/15.
“This enabled companies to deliver record-breaking capital investment of £432m in new cleaner vehicles and other equipment.”
- Report at www.passtrans.co.uk
