Preston Bus agrees to Stagecoach takeover

EMPLOYEE shareholders at Preston Bus have approved a takeover by transport giant Stagecoach.

The business will now become part of Stagecoach North West which employs 1,400 and operates 530 buses in Lancashire and Cumbria. The deal was understood to be worth around £7m.

Stagecoach confirmed there will be management changes but is has given a committment to driving and engineering staff that there will be no compulsory redundancies for two years.

Peter Bell, Preston Bus’s managing director, said the deal offered the best opportunities for staff.

He added: “The company faced an uncertain future as a result of the current economic climate and legislative changes… the governmnet’s plan to change the fuel tax arrangements for bus operators, and suggestions that operators should not be fully reimbursed for carrying customers with concessionary bus passes.”

Stagecoach said passengers would benefit from a more integrated network and a simplified fare structure.

Preston Bus, which operates 14 routes in the city and in South Ribble, was owned by past and present employees and operates 120 buses. It is understood Preston Bus approached Stagecoach about the deal.

The business was formed in 1986 to take over Preston Borough Council’s transport department. In 1993 the council sold the business to its staff.

Most recently filed accounts for the year to April 2007 show Preston Bus made an operating profit of £402,000 on turnover of £11.1m.

In the directors’ report the company said profitability was being affected by fluctuations in fuel costs, increased competition from a rival operator and personal injury claims after accidents involving its vehicles. The company currently has around 300 staff.

In August Stagecoach North West bought 22 vehicles and a number of routes around Manchester from family-owned business R Bullock.