The operator of Dundee’s main bus network has posted a rise in full year profits.
Shares in Xplore Dundee owner National Express pushed ahead yesterday after the bus and rail operator revealed a hike in revenues from continuing operations from £1.75 billion in 2015 to £2.1bn last year.
Pre-tax profits for the year to December 31 came in at £136.3 million, up from the £122.7m of the year previous.
The group employs more than 44,000 staff in its bus, coach and rail operations in Europe, North Africa, North America and the MIddle East.
Group chief executive Dean Finch said the firm had delivered a “strong set of results” despite challenges in some of its core business divisions.
He told investors the UK bus market was experiencing a “particularly challenging period” with the group’s operations seeing a decline in margins and operating profit in the year.
“The combination of urban congestion and changing travel patterns are affecting revenue and profit,” Mr Finch said.
“Across the year the bus division increased commercial revenue by two percent, but this was offset by the expected decline in concessionary income, to deliver overall revenue growth of only 0.1%.”
Mr Finch said within the wider picture there had been successes, with its Platinum service seeing a 4% passenger uplift in the year and targeted fare reductions helping to boost custom.
“So while there are industry-wide concerns, we are actively pursuing a plan to address the particular challenges and capitalise on our unique opportunities in the West Midlands and Dundee,” Mr Finch added.
The trading figures came in the week that West Midlands-headquartered National Express marked the 20th anniversary of operating in Dundee.
The group bought over the then Tayside Buses operation in February 1997 and quickly renamed it Travel Dundee.
The bus company – which has its workshops and offices at a major site off Dock Street – went through a number of iterations before being rebranded under its current name of Xplore Dundee in 2015.
The division employs around 360 staff and operates a fleet of more than 100 buses and coaches.
