REG-FirstGroup Plc: Acquisition of Lakeside Group

FirstgroupAnnouncement

25/10/2024 07:15

FIRSTGROUP PLC

Acquisition of LAKESIDE GROUP

 
* FirstGroup has acquired Lakeside Group, a profitable, well-established
Shropshire and Cheshire-based company that provides school, B2B and B2C
private hire services, with a fleet of c.145 buses and coaches 
* Complementing the recent additions to the First Bus portfolio, this
strategic acquisition will allow us to grow our coaching business and offers
the potential to increase our presence in the West Midlands
FirstGroup plc (the ‘Group’) is pleased to announce that it has acquired
Shropshire-based Lakeside Group (‘Lakeside’) comprising well recognised
local brands Lakeside Coaches, Merediths Coaches and A. T. Brown Coaches.

Lakeside operates a fleet of c.145 buses and coaches of various sizes
primarily from a central, owned depot in Ellesmere, Shropshire and from five
smaller depots – one owned in Shrewsbury and the others leased - in
Shropshire, Telford and South Cheshire.

The majority of Lakeside’s revenue is derived from school and private hire
contracts, with the remaining revenue coming from tours, a small local bus
operation (under contract to Shropshire County Council) and B2B operations.
The business has grown significantly over recent years, both organically and
inorganically, and has retained strong levels of profitability. For the year
ended 31 March 2024, Lakeside delivered revenues of c.£12.5m and EBIT of
c.£2.5m.

Neal Hall, the Managing Director of Lakeside, will continue to manage the
business on a day-to-day basis going forward. Gareth Davies, the owner of
Lakeside, will continue to lead the business and will join First Bus to
support the ongoing development of its wider coaching strategy.

The acquisitions we have made in recent years, in line with our stated
strategy to grow and diversify the First Bus portfolio, now represent combined
annualised revenues of c.£100m and EBIT of c.£13m and we continue to
evaluate a pipeline of organic and inorganic growth opportunities.

Graham Sutherland, FirstGroup Chief Executive Officer 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.”

 

 

 

 Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stuart Butchers, Head of Corporate Communications corporate.comms@firstgroup.co.uk Tel: +44 (0) 20 7725 3354  Contacts at Brunswick: Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959  

 

 Contacts at Panmure Liberum: Nicholas How / John Fishley Tel: +44 (0) 20 3100 2000  Contacts at RBC Europe Limited: James Agnew / Jack Wood Tel: +44 (0) 20 7653 4000  

 

 

Notes

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 3.1.

 

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.7 billion in revenue and around 30,000 employees,
we transported almost 2m passengers a day in FY 2024. We create solutions that
reduce complexity, making travel smoother and life easier. Our businesses are
at the heart of our communities and the essential services we provide are
critical to delivering wider economic, social and environmental goals. Each of
our divisions is a leader in its field: First Bus is one of the largest
regional bus operators in the UK, serving more than 20% of the population in
the UK with a fleet of around c.4,800 buses, and carrying more than a million
passengers a day. First Rail is one of the UK’s largest rail operators, with
many years of experience running long-distance, commuter, regional and sleeper
rail services. We operate a fleet of c.3,700 locomotives and rail carriages
through three DfT contracted train operating companies: WCP (incorporating
Avanti West Coast and West Coast Partnership Development), GWR and SWR) and
two open access routes (Hull Trains and Lumo). We are formally committed to
operating a zero-emission First Bus fleet by 2035, and First Rail will help
support the UK Government’s goal to remove all diesel-only trains from
service by 2040. During FY 2024 FirstGroup was named as one of the world’s
cleanest 200 public companies for the fifth consecutive year and achieved
Industry Top-Rated status for the first time with Sustainalytics. We provide
easy and convenient mobility, improving quality of life by connecting people
and communities. Visit our website at www.firstgroupplc.com and follow us
@firstgroupplc on X.



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