Improved performance at Lothian – the capital’s transport operator – has allowed the company to increase the dividend to its public sector owners to £6.8m (up from £6.6m last year). The figures are contained within the just released 2017 Annual Report, which also highlights a 4.1% increase in turnover from £146.9m in 2016 to £152.9m in 2017.
Jim McFarlane, Chair of Lothian, said:
“I’m really pleased that our accounts released today demonstrate that we continue to buck the national trend experienced by much of the bus industry by increasing customers, revenues and investment while maintaining profitability and our ability to provide a dividend to our local authority shareholders.
Having a strong and embedded strategy, coupled with the outstanding performance, dedication and ongoing commitment of our management team and staff at all levels allows our business model to serve the City of Edinburgh and the surrounding Lothian Councils with innovative customer focused bus services.
“We continue to grow and expand, creating new jobs and opportunities by focusing on high quality products coupled with strong delivery by our teams, whilst increasing the levels of transport provision for our customers’’
Richard Hall, Lothian’s Managing Director added:
“Lothian contribute massively to both the local and wider Scottish economies, whether that be through employment opportunities or our supply chain.
It is now critical that we future proof our business by investing in new opportunities and markets as well as improving the profile of our fleet and assets. Significant investment in new buses to enhance the customer experience and meet emissions targets is a key critical path. Such investment, growth and expansion, creates new jobs whilst increasing levels of transport provision and improving the overall customer experience. ’
Partnership working is vital to the future success of our operations and we need to continue to work closely with the City of Edinburgh and surrounding Lothian councils to ensure that our buses are able to move efficiently around the city and its environs which in turn allows us to deliver a high level of service for all of our customers.
Buses are the solution, both now and in the future to combat rising congestion and environmental issues.”
Transport and Environment Convener, Councillor Lesley MacInnes, said:
“Transport Convener Councillor Lesley Macinnes, Chair of Transport for Edinburgh, said: “Public transport is going from strength to strength in Edinburgh and today’s annual accounts from both Edinburgh Trams and Lothian Buses are evidence that residents, commuters and visitors continue to value the excellent services both operators provide. As a Council, we’re absolutely committed to promoting public transport, alongside walking and cycling, as a cost-effective, safe, convenient and reliable way to get from A to B in the city. We look forward to continuing our productive partnership and working relationship with both companies as we work to deliver a sustainable and truly integrated public transport system for Scotland’s Capital.”
Key 2017 performance figures against the company’s key indicators includes:
- Revenue for 2017 was £152.9m (an increase of £6.0m)
- Net profit was £7.4m
- Operating profit margin was 6.7%
- Interim dividend was £6.8m: an increase of £0.2m
The company also invested £26.2m in their asset portfolio, including 86 new passenger vehicles (around 10% of its total fleet).
Over the last 10 years, the company has generated revenues of over £1.3 billion, and returned a dividend of £40.8 million to its local authority shareholders. During this period it also carried over 1.1 billion passengers.
Download the 2017 Lothian Annual Accounts here.