Coach industry investor REL Group has taken delivery of new vehicles for its Davian Coaches and Redwing Coaches brands in what Director Andy Scott (pictured) says represents the first part of an ongoing fleet investment plan.
Six Volvo B8R MCV Evotor models ordered earlier in 2024 have joined for use on private hire, tours, and contracts with private schools. Mr Scott notes that under prior ownership, Redwing historically ordered five or six new coaches per year and REL is keen to continue in that vein across Redwing and Davian.
He has underlined previous comments that the position around full expensing sits favourably with such investment but says that a priority is for the businesses “to have a modern fleet, especially when factoring in the disproportionate rise in maintenance costs when vehicles get to eight years old.”
REL is now in the market for up to 15 new coaches during the first half of 2025 and is keen to speak with manufacturer and dealerships, although Mr Scott has raised the potential of a recurring annual order to secure economies of scale and leverage the group’s funding availability and lender support. It is “still in talks” with Volvo over future orders, he adds.
Separately, REL remains keen to speak to any coach operator that is considering retirement and closing their business.
Mr Scott believes some coach companies that have been subject to orderly closures could have continued to trade under REL ownership. That approach by others in a similar position would save jobs via TUPE and “net more for those shutting up shop by way of a sale rather than a shutdown, if bolted onto one of our operator partners,” Mr Scott continues.
REL has seen regular growth since it entered the coach industry with the purchase of Davian in 2020. It has moved from an initial approach of buying distressed companies post-COVID-19 to acquiring profitable businesses and those where the owners wish to retire.
Three further deals are in hand for expected completion by the end of 2024. Two of those are currently at the legal stage, Mr Scott advises.
