FirstGroup has sold five freehold depots and fixed assets within them – including 251 diesel vehicles and 79 electric vehicles – to the West Yorkshire Combined Authority for \u00a3109m.<\/p>\n
The depot sales have completed, and the fleet sales will occur as the three franchise tranches go live – currently planned for May 2027, January and October 2028. First Bus will continue to run existing commercial bus routes up to the date of the franchise commencement at the respective depots, which are being leased to the group at a peppercorn rental rate.<\/p>\n
First anticipates a post-tax disposal gain of circa \u00a330m in relation to the completed depot sales, and cash inflows of around \u00a355m in full-year 2027.<\/p>\n
Following the transition of the five depots to franchising, circa 130 buses will be “cascaded” to other parts of the group, resulting in the deferral of some capital expenditure and working capital, representing a further \u00a310m cash flow over the next two years.<\/p>\n
The group will also undertake the electrification of the Bradford and Huddersfield depots at West Yorkshire Combined Authority’s cost, prior to the start of franchising. This will include a design, tendering and project management service. The Bramley depot has already been partially electrified by the group.<\/p>\n
First has been awarded two bus franchise contracts in Bramley and Huddersfield, as part of the first of three tranches of the franchise programme. The contracts are due to commence in May, with a core term of five years and an option to extend for a further two years, and the group anticipates combined annual revenues of \u00a340m.<\/p>\n
First will retain ownership of the diesel fleet, valued at about \u00a39m, to operate the Bramley contract throughout the franchise term, before transferring them to the successor operator at an agreed residual value.<\/p>\n
FirstGroup chief executive Graham Sutherland commented: “We are delighted to have reached an agreement with regards to the sale of our assets and secured these important franchise contracts.<\/p>\n
“We look forward to drawing on our scale, expertise and strong operational track record to deliver high-quality, sustainable bus services in partnership with the West Yorkshire Combined Authority.”<\/p>\n","protected":false},"excerpt":{"rendered":"
The deal, including 251 diesel vehicles and 79 electric vehicles, is worth around \u00a3109m<\/p>\n","protected":false},"author":278857,"featured_media":663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,47996],"coauthors":[137126],"class_list":["post-8703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-transport","tag-featured-story","tag-greater-glasgow","tag-west-yorkshire"],"yoast_head":"\n