(29/06/2019 15:22)iMarkeh Wrote: [ -> ]It's all good upgrading the fleet but do they have the money to do it. They are more expensive than their competitors where they exist and it seems like a lot of passes being used on routes. The routes are mostly high frequency start until end with routes ending at like 11pm even to Staining (which can't make much as it's hourly during the day). They do seem to over service areas. Surely they can't be making this much investment and still be making a profit.
Their rule of no buses older than 5 years is quite a big thing to stick by and keep making profit in a market which is full of struggling operators.
BT is not the only 'small' operator to invest in new fleet. There are several in England that have upgraded their fleets and have managed to survive and prosper. Obviously their finance directors know what they are doing and perhaps not having to pay a dividend to shareholders helps balance the books.
As for your objection to the elderly using their ENCT passes, without them many routes would quickly prove to be unviable. Rather than be a drain on BT and other operators, the ENCT often proves to be the difference in retaining marginal services
The company saves a lot financially having modern stock in that maintenance is a lot less with the age profile of the current fleet.
will they be replacing the rest of the fleet that are still in the black and yellow livery?
(30/06/2019 07:59)Barney Wrote: [ -> ]BT is not the only 'small' operator to invest in new fleet. There are several in England that have upgraded their fleets and have managed to survive and prosper. Obviously their finance directors know what they are doing and perhaps not having to pay a dividend to shareholders helps balance the books.
As for your objection to the elderly using their ENCT passes, without them many routes would quickly prove to be unviable. Rather than be a drain on BT and other operators, the ENCT often proves to be the difference in retaining marginal services
Blackpool Transport paid a dividend to its shareholder.of £588,000 in 2018 - 2.4% of its turnover. The impact of borrowing for the new fleet saw the payment of for services/loan Charges etc to the council increase from £374,000 to £853,000.
(30/06/2019 10:03)Paul_Turner Wrote: [ -> ]Blackpool Transport paid a dividend to its shareholder.of £588,000 in 2018 - 2.4% of its turnover. The impact of borrowing for the new fleet saw the payment of for services/loan Charges etc to the council increase from £374,000 to £853,000.
As BTS is owned by Blackpool Borough Council, am I right in thinking that the £588K paid to its 'shareholders' was actually paid to BBC and this sum more than covers the increase in services/loan charges.
My understanding is that the big groups' shareholders expect a minimum profit margin of 5% of its turnover.
Also, as most of the fleet is new or nearly new, the fleet should be far more reliable and in the event of major fault it would be covered under manufacturer's warranty anyway.
(30/06/2019 13:13)Barney Wrote: [ -> ]As BTS is owned by Blackpool Borough Council, am I right in thinking that the £588K paid to its 'shareholders' was actually paid to BBC and this sum more than covers the increase in services/loan charges.
My understanding is that the big groups' shareholders expect a minimum profit margin of 5% of its turnover.
Also, as most of the fleet is new or nearly new, the fleet should be far more reliable and in the event of major fault it would be covered under manufacturer's warranty anyway.
No. The £588k is the dividend paid to the council as shareholder, it was about £50,000 higher than last year. The company also paid over £800k to the council as part of its operating expenses including loan charges. So overall it has paid £1.3mn.
Undoubtedly the warranty and repairs deals,.plus fuel economy help offset the loan charges.
Not sure shareholders are interested in margin targets pre se, as long as they get either capital growth or dividends (depending on their reason for investing) it's not that important what the margin is. Stagecoach's 2019 pretax margin was 4.5%. it's dividend was about 2.1% of revenue.
Another thing about having a modern fleet, or fairly modern, is that spare parts should be easier to obtain.
(30/06/2019 07:59)Barney Wrote: [ -> ]BT is not the only 'small' operator to invest in new fleet. There are several in England that have upgraded their fleets and have managed to survive and prosper. Obviously their finance directors know what they are doing and perhaps not having to pay a dividend to shareholders helps balance the books.
As for your objection to the elderly using their ENCT passes, without them many routes would quickly prove to be unviable. Rather than be a drain on BT and other operators, the ENCT often proves to be the difference in retaining marginal services
I can understand them investing, it's more a case of how much they are investing and the 'no bus older than 5 years' rule meaning the first palladium buses will be off in just over a year.
I don't have objections to the concessionary passes. I'm saying that on routes which almost all run very frequently how are the passes actually keeping the routes afloat. All around the UK, operators are cutting back 'pass routes' because they don't get enough reimbursement. How then can BT run buses every 15 minutes when (from my observations) most of the buses are quiet and those onboard have passes.
(30/06/2019 16:26)iMarkeh Wrote: [ -> ]I can understand them investing, it's more a case of how much they are investing and the 'no bus older than 5 years' rule meaning the first palladium buses will be off in just over a year.
I don't have objections to the concessionary passes. I'm saying that on routes which almost all run very frequently how are the passes actually keeping the routes afloat. All around the UK, operators are cutting back 'pass routes' because they don't get enough reimbursement. How then can BT run buses every 15 minutes when (from my observations) most of the buses are quiet and those onboard have passes.
Lest I miss out on such a ride, I shall probably come to Blackpool within the next year. I hope I could combine the trip with a tram to/from Blackpool North and a 331. The 331 would be easiest to omit as I could ride one in Leeds for example.
(30/06/2019 16:26)iMarkeh Wrote: [ -> ]I can understand them investing, it's more a case of how much they are investing and the 'no bus older than 5 years' rule meaning the first palladium buses will be off in just over a year.
I don't have objections to the concessionary passes. I'm saying that on routes which almost all run very frequently how are the passes actually keeping the routes afloat. All around the UK, operators are cutting back 'pass routes' because they don't get enough reimbursement. How then can BT run buses every 15 minutes when (from my observations) most of the buses are quiet and those onboard have passes.
Not quite. Blackpool Transport's target is to have no buses which are over five years old in the fleet by 2020 - not that buses would be replaced once they reach five years old