Tuesday, 24 April 2012

That X Factor

There’s life beyond the south coast of England, it would seem : ) In news pushed out by the overwhelming importance of the Gosport to Fareham busway, we now need to head way up north to catch up a little, to Epsom in fact, and then on to somewhere called Beccles.


In Epsom you will now find another of the eclectic bedfellows in the RATP Dev group. For it was on Friday that RATP announced it had acquired family owned H R Richmond Ltd t/a Epsom Coaches. It joins:
  • One undertaking operating wholly within the deregulated environment, Yellow Buses;
  • Another wholly within the London regulated market, London United (both following the Transdev/Veolia stocks deal);
  • Sightseeing tourist bus operator the Bath Bus Company, with City Sightseeing franchises in Bath, Eastbourne, Windsor and Cardiff, Wales; and
  • The former Stagecoach Metrolink operation.
Quite a portfolio of dissimilarities, in fact.

And, yesterday, Go Ahead added to its more straightforward and core portfolio 71-vehicle Anglian Bus. It joins nearby-ish acquisitions Konectbus in Norfolk and Hedingham Omnibuses in Essex.

Troubled times there may be, but there’s still activity in the takeover market. It does depend who you are, of course, and, in London, there’s nothing to fear from the yet-to-be fully announced government thoughts of the recent Competition Commission bus market inquiry. So, if you have that X factor, and offer a quality service (as does Epsom Coaches and Anglian), with a number of bidders still around, you can still guarantee top weight. But, if the quality’s not there, finding a bidder isn’t so easy.

Established in 1920 and once nothing other than a coach operator, Epsom Coaches diversified into buses at dereg. It wasn’t till the late 1990s that it found its niche, though, as it began successfully tendering in the London market. It was this rather than the quality coaching side that attracted RATP. These days, over ¾ of its 110-strong fleet is made up of buses. They operate under the Quality Line name though, aside from a small amount of business with Surrey council, the brand is largely hidden under the usual sea of LT red. TfL contracts, including the recently acquired X26, means its average fleet age is an impressive 3½ years.

Anglian is a more “traditional” post-deregulation start up (it actually came to being beforehand but flourished as a typical post-dereg niche provider). Like Quality Line’s fleet, it’s young and all low floor.

Both RATP and Go Ahead will be keeping local management. This is perhaps strangest with Epsom, given that RATP has its London United HQ about 10 miles distant, in Twickenham. Go Ahead’s East Anglia acquisitions are more scattered but at least Konectbus and Anglian Bus both focus on Norwich. Me, I’d’ve sought some management synergies straightaway and may be that will still be the plan for both, back office-wise, in due course.

One of Quality Line’s 14 London bus routes is the X26, a rare TfL breed indeed. It’s limited stop and it, too, has the X factor and, unsually for London, this is quite literally). It has featured widely in comments on this very blog. It was only 10 days ago that this passed to Quality Line, having previously been with Metrobus. Quality now use Citaros and though they can’t hold a candle to the B7RLE for fuel economy, they’re certainly better than Metrobus’ N94UBs. According to comments on seven posts (probably a record for an individual service?) the X26:
  • Was previously Green Line 726
  • Is limited stop but has no parallel stopping service (unlike the 607, which does (207) but has no X prefix)
  • Can be the subject of considerable over-crowding, from long and short distance travellers, including those with much luggage (who prefer single to double decks, naturally)
  • Has never been pushed in the way it probably would be had it been a provincial, deregulated service [though marketing it might overload it further…]
  • Was supposed to be the first of many orbital London routes that didn’t happened (or haven’t yet). Yet, the X26 was doubled in frequency
  • Was subject to the Passenger Transport journal Mystery Traveller, who considered the Metrobus service to be “below par”
Picture of Epsom Quality Line used under Creative Commons licence from Eastleigh Bus Man

14 comments:

Anonymous said...

un vrai pot pouri? (-:

Anonymous said...

Theres a surprise.Not many left now before monopoly is complete.Whatever happened to the competition commission??Its a joke is it not?RE-REGULATION WILL COME.

Anonymous said...

I hope re-regulation doesn't come. Look back through the rose tinted lenses, I still see the memories of the 1970/80s.

This meant the era of cross-subsidisation or in other words, giving those people who wanted a good bus service a lower one, to assist those whose bus service wasn't well patronised enough to be financially viable.

I'd be more worried if the organisations concerned had sold out to Arriva (Epsom) or First (Anglian) but they've actually sold to pretty decent though large firms.

In the case of Anglian (and Hedingham before), the owners were looking to retire and realise the fruits of their labours. What were they to do?? Wind up their operations, and so reduce competition further? Instead, they've sold to someone who is not a competitor and they get the full value for what they've worked towards.

Anonymous said...

I would be very concerned if I was working for Hedingham or Anglian. Go Ahead's track record with rural operations is pretty awful, just look at the mess at Go South Coast where Hatts/Bodmans is now a significant player around Salisbury and look at their dreadful Dorset operations......
An operation that once achieved 15% profit margins gets nowhere near that and the new owners managed to get it losing money within three years....

Anonymous said...

Hatts/Bodmans are not a significant player around Salisbury.

They have the Park and Ride ops (not especially rural??) and apart from that, it's the 24 from Warminster to Salisbury.

As for loss making GSC, wasn't that down to the high setup costs associated with the massive expansion that cannot be regarded as capital?

Anonymous said...

Local management have been kept at Konectbus and Anglian, so I doubt Go ahead will make the companies up t**s up.

The talk was Go ahead might have been interested in buying First assets in the area, but its looks unlikely now. Maybe Go ahead will buy First york or Chester :P

Anonymous said...

Don't Hatts/Bodmans operate a number of other tendered services around Salisbury, aside from P&R and the 24?? Their presence amounts to around 15 buses.

Wilts & Dorset made a loss (i.e costs exceeded income) in the 2005/6 accounting year - less than three years after Go Ahead took the business over.

Comforted to see local management have been retained at konectbus and Anglian though - developments there are sure to be of interest.

Anonymous said...

Would love to see Go-Ahead have a crack at York. Don't see why they would be interested in First in E Anglia - though Norfolk Green or Stephensons might be in their sights?

Anonymous said...

Ref: Wiltshire Buses in Salisbury, they admittedly dealt a blow in getting the P&R but the other stuff is the 24, plus tendered stuff on 3 routes. However, that is only a one vehicle duty. That, and the Lackham Coll service and the odd school route but it really isn't a lot. No doubt, they will want to develop it. However, compared to First's Wiltshire retreat, it is not substantial.

Picking one years' financials is one thing, but that is in isolation. Were there exceptionals? How does this compare with previous and subsequent years? Think you need to put it all together, in context, to really get the full picture.

Dave said...

Now they have picked up stuff to the north and south of it, expect them to renew their interest in Ipswich Buses...

Anonymous said...

Oh, and few 44s and 66s in the late afternoon ;)

Anonymous said...

Go Ahead must be thinking of setting up a consolidated operation in Norfolk & Suffolk. It makes no real sense to have Heddingham, Konnect & Anglian operating as totally standalone operations

If Go Ahead do not make a mess of it, it must put a lot of pressure on First Norfolk & Suffolk who are struggling

Anonymous said...

Re the Epsom Buses takeover - it must leave TfL frustrated as the pool of operators it can ask to tender reduces once again - in the end re-tendering means swapping one large corporate operator for another and the staff being TUPED across - cant be the ideal solution.

Anonymous said...

The reduced pool of operators able to tender in London also means the tender costs will become very similar.However,the cheaper smaller ops. have generally not always proved to be reliable or up to standard.

I believe,Epsom only won the X26 tender on ambitious low costings and operating plans...so wonder how that stacks up now that RATP are lumbered with them ?