A Fife bus company is overhauling its fleet in response to the introduction of the Low Emission Zones.
Moffat and Williamson, which has bases in Newport-on-Tay and Glenrothes, has taken the step to replace its buses to deal with the new regulations.
Glasgow’s scheme began earlier this year, with Dundee’s Low Emission Zone (LEZ) to begin next summer.
George Devine, Moffat and Williamson managing director, explained the impact of the new regulations.
He said: “Depreciation remains high owing to the second-hand market being flooded with coaches and buses that cannot be converted to Euro 6 or do not meet PSVAR standards and most cities LEZ regulations have come into force.”
He said the firm has been overhauling its fleet to take into account the new regulations.
“The company has been steadily replacing the fleet of service buses and school buses to take account of the introduction of LEZ zones so as we can operate in any local area going forward,” he added.
Rise in sales for Fife bus firm
Mr Devine’s comments came as the firm’s accounts for the year to November 2022 were published.
They showed turnover rise to £7.8 million for the year to November 2022, newly published accounts show.
That was up from £6.9m the previous year.
In his strategic report, published alongside the accounts, Mr Devine said the increase was attributed to increased tender work.
The accounts also show the firm has recorded a pre-tax profit of £284,068. That is compared to a pre-tax loss of £73,964 the year before.
Mr Devine’s report adds: “Private hire income still remains below pre-Covid levels, however service income is beginning to rise steadily.”
Last year, the managing director said the rise in fuel costs had a huge impact on the business.
Although prices at the pumps have eased, he said it is still affecting the firm.
The report adds: “Fuel costs is still a major factor and has a big impact on the company’s costs, coupled with the waiting time and availability of bus parts, which are now not readily available and are mostly manufactured abroad.”
Wages up to cope with cost-of-living crisis
The accounts also show the average number of employees to be 129, up two from the year before.
The Moffat and Williamson wage bill has increased from £2.6m to £2.9m.
Mr Devine said this was to support the staff through the difficult economic climate.
He adds: “Staff wages and salaries have increased 13.2%. The company continues to assist the staff with the increase in the cost of living.”
He said the company is continuing to explore avenues to increase its turnover and profitability.
“The company continues to improve and develop its relationship with all its customers, and in particular relationships within the local authorities, and the service it provides to them.
“With new tenders already submitted, and some more to come later in the year, the company is hopeful it can continue to grow.”