FirstGroup PLC (LSE:FGP) has expanded its footprint in the contract private hire area with the acquisition of West Midlands-based Lakeside, which provides services to schools and other organisations through a fleet of 145 buses and coaches.
Operating under Lakeside Coaches, Merediths Coaches and AT Brown Coaches, Lakeside had a central, owned depot in Ellesmere, Shropshire and five smaller depots in Shrewsbury, Shropshire, Telford and South Cheshire.
For the year ended 31 March 2024, Lakeside delivered revenues of £12.5 million and underlying profits [EBIT] of £2.5 million, most of which came from schools, B2B and a small contract bus operation.
Neal Hall, the Managing Director of Lakeside, will continue to manage the business on a day-to-day basis going forward, said FirstGroup, adding its bus arm now has annualised revenues of £100 million and underlying profits of £13 million.
Graham Sutherland, FirstGroup’s chief executive, said: “The acquisition of Lakeside, a profitable business with excellent growth potential, builds on our recent acquisitions in First Bus.
“The addition to our portfolio will not only grow our position in adjacent services, but it will also allow us to enter new regions which is key to the overall First Bus strategy.”