LONDON - FirstGroup (LON:FGP) plc has expanded its transportation services by acquiring the Lakeside Group, a company known for its school, business-to-business, and consumer private hire services, with a substantial fleet of approximately 145 buses and coaches. This move is part of FirstGroup's strategy to grow and diversify its First Bus portfolio.
Lakeside, with its central depot in Ellesmere, Shropshire, and additional depots across Shropshire and South Cheshire, has demonstrated significant growth and profitability, reporting revenues of about $12.5 million and earnings before interest and taxes (EBIT) of roughly $2.5 million for the year ending March 31, 2024.
The acquisition includes respected local brands such as Lakeside Coaches, Merediths Coaches, and A. T. Brown Coaches. The majority of Lakeside's revenue comes from school and private hire contracts, supplemented by tours, local bus operations contracted to Shropshire County Council, and business-to-business operations.
Neal Hall will remain as the Managing Director of Lakeside, overseeing day-to-day operations, while Gareth Davies, the former owner, will join First Bus to assist in the development of the company's broader coaching strategy.
FirstGroup's Chief Executive Officer, Graham Sutherland, remarked on the acquisition's alignment with the company's growth objectives. He noted that Lakeside is a profitable business with excellent growth potential and that its addition will not only enhance FirstGroup's service offerings but also enable the company to extend its reach into new regions, which is crucial for the overall strategy of First Bus.
The recent acquisitions by FirstGroup now represent combined annualized revenues of approximately $100 million and EBIT of around $13 million. The company continues to explore further growth opportunities, both organic and through additional acquisitions.
This strategic expansion is expected to strengthen FirstGroup's market position in the transportation sector, specifically within the West Midlands. The information for this report is based on a press release statement.
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