Blackpool Transport

[Paul_Turner]

RE: Blackpool Transport

(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.