BannerAd   

BannerAd

        



Telling sells London operation to NatEx

IN A MOVE which has taken industry observers by surprise, Tellings Golden Miller has agreed to sell its London bus operations to National Express for £20.4million.

Less than two years ago Steve Telling was bullish about opportunities for expansion in the London bus business when TGM was floated on the Alternative Investment Market.

Now the company is saying that it was unable to expand by acquisition, and that it feels opportunities to secure new tenders are constrained by rising labour costs and the growing influence of larger operators in the capital.

The new focus is to be in expansion outside London. In a statement TGM says that it sees “significant opportunities for growth in its regional coach and bus businesses in 2006 and beyond by acquiring complementary businesses and extending existing contracts with its strong client base”.

In the year ended 31 December 2004, turnover of TGM’s London Bus Division was £23.9million, operating profit was £2.1million and net assets were £4.8million. The purchase price of £20.4 million represents around 89p per share. The majority of the cash proceeds arising from the sale will be paid to shareholders by way of a special interim dividend of 60p per share.

The sale will leave TGM with 30 coaches in Twickenham, and with subsidiaries which include Tellings Golden Miller Coaches operating from Portsmouth as a subcontractor to National Express, Burtons of Haverhill, Classic Coaches of Annfields Plain, and Linkline Coaches in London.

All these businesses combined produced a turnover of £14.5million with a £1.3million operating profit for the year to December 2004.

Steve Telling says: “I am delighted to have secured an attractive price for the sale of our London Bus Division and to be able to return a substantial cash sum to our shareholders. Our remaining business offers good potential for growth and we look forward to enhancing shareholder value in the coming years.”

The acquisition of the TGM bus business by National Express is expected to be completed in mid-June, and will add 16 London contracted services and various operations in Surrey to NatEx’s Travel London business, along with 183 buses, 500 employees, and depots at Twickenham, Hayes and Byfleet.

It doubles the size of the Travel London operation, which was set up in February 2004 to take over the Connex bus business in south London.

www.tellingsgoldenmiller.co.uk 
www.nationalexpress.com



Bookmark and Share  


Related Content

NatEx sells London bus business

NATIONAL Express is pulling out of London - for the second time - with the agreement to sell its Travel London business to NedRailways, a subsidiary of NS Dutch Railways.

NatEx gets rights issue support

Shareholders in National Express have voted by two to one to support a rights issue which is expected to raise £360million which will be used to reduce the group’s £1billion debt.

National Express sale deadline extended

The deadline for settling a takeover bid for National Express has been extended by two weeks.

National Express gives up on Dot2Dot

National Express is abandoning its Dot2Dot minibus service.

Consortium abandons NatEx bid

The fate of National Express looks even more uncertain following an announcement by the CVC/Cosmen consortium that it will not proceed with its £765million offer for the group.

National Express sells in Australia

NATIONAL Express is cutting back dramatically in Australia, selling three of its four bus operations in the country.



International news

SMRT orders Enviro500s

SMRT Corporation has ordered its first double-deck buses, 201 ADL Enviro500 tri-axle models for delivery in 2014-15.

Electric Citea trial

Next month will see VDL deliver its first Citea Electric to Finland, where it will be operated by Veolia Transport in Espoo, in the Helsinki area, for two years as part of the country’s eBus project which is researching electric vehicle systems.

Scania expands in Taiwan

Scania is strengthening its position in the Taiwanese bus market with orders for 180 chassis from two operators and with the addition of two new workshops to its service network.

Setra in the lead

Zerzuben Touristik of Visp is taking delivery of 15 Setra touring coaches, 11 ComfortClass 500 single-deck and four S431DT double-deck, all with Euro 6 engines.

Bio-diesel hybrid order

Uddevalla Omnibus, on Sweden’s west coast, has ordered five hybrid buses and five ambulance coaches from Volvo.

Volvo builds low-cost UD range

Volvo in India is launching a bus range designed for developing markets.



Product news

Book early for aircon servicing

As the summer holiday season beckons, operators are being urged to get their services in early by Grayson Thermal Systems, Thermo King’s sole approved distributor to the UK’s bus and coach sector.

New entrants for IRTE Skills Challenge

The IRTE Skills Challenge, which aims to find the best mechanical, electrical and bodywork technicians in the bus and coach world through testing skills and knowledge has attracted a number of new participants this year.

New Bridgestone all-position tyre

Low cost per kilometre and high safety throughout the tyre’s total lifecycle are among the benefits that Bridgestone claims for its new all-position U-AP 001 tyre.

M-ticketing being rolled out at First

First UK Bus is rolling out m-ticketing across its network during 2014 with customers in Aberdeen and Worcester being the first to benefit from the new payment option.

Voith makes further municipal conquest

Reading Buses is the latest municipal company to opt for Voith bus transmissions with the DIWA 824.

M-ticketing avoids search for exact fare

Lothian Buses reports that it has sold more than 100,000 m-tickets since launching its mobile ticketing and RTI app in November 2013.



People in the news

Award for Nodder

Mark Nodder, Wright Group managing director has been named Business Person of the Year at the Belfast Telegraph Awards.

Woodford appointed to Stagecoach

Stagecoach Manchester has appointed GILLIAN WOODFORD as marketing manager.

New MD for Bournemouth

ANDREW SMITH has been promoted to managing director of Bournemouth Transport, the RATP subsidiary which trades as Yellow Buses.

Roberts departs Blackpool

TREVOR ROBERTS, managing director of Blackpool Transport since 2009, has left the company.

New managers at Damory Coaches

Go South Coast, the Go Ahead Group’s southern division of bus and coach companies, has new managers at its Damory Coaches business.

Pettigrew for Stockton depot

Stagecoach North East has a new operations manager at its Stockton depot.

 

Latest News | View All News

ADL top in Arriva fleet order

Arriva UK Bus has this week announced a £40million order for 231 new buses for delivery over the next 12 months, with Alexander Dennis being the biggest supplier.

Wolmar attacks Borismaster costs

Would-be London mayoral candidate and transport author Christian Wolmar has attacked the cost of incumbent mayor Boris Johnson’s New Bus for London, saying that the extra cost of the Borismaster is approaching £7million a year, and will rise as more enter service.

Scots fund more green buses

The Scottish government is providing around £2million in funding for another 32 low-carbon buses in the fourth round of the Scottish Green Bus Fund.

Welsh cuts blamed for Brynmawr

Stagecoach South Wales has announced the closure of its Brynmawr depot in July in response to cuts in support from the Welsh government and by local authorities.

Battery-electric Optares for Glasgow

The Strathclyde Partnership for Transport has ordered two Optare battery-electric buses for operation on the half-hourly service which links the city centre with the Riverside transport museum.

Stewarts expands with Woods of Leicester

Stewarts Coaches of Reading has acquired Woods Coaches of Leicester for an undisclosed sum.



Latest vehicle deliveries

Elite duo for Docherty’s Midland

Docherty’s Midland Coaches of Auchterarder has taken delivery of two new 12.

More open-tops join Golden Tours

London sightseeing operator Golden Tours has added ten new Volvo B9TL open-top buses with Egyptian MCV bodywork to its fleet.

Steel’s Coaches adds Euro 5 Leopard

Steel’s Coaches of Addingham has taken delivery of a new 12.

Ellisons takes Euro 6 Neoplans

Ellisons Travel of St Helens has put its first Euro 6 coach on the road, a Neoplan Tourliner.

Attain adds another Scania Irizar

Attain Travel of Birmingham has purchased another new Scania Irizar.

Sunsundeguis for Gibson Direct

Gibson Direct of Renfrew has taken delivery of three new Volvo B11Rs with Sunsundegui SC7 bodywork.



Coach tourism news

BannerAd

See our special e-dition on the RDA Workshop and Cologne. Click above to view.

Two more towns win Coach Friendly status

Two towns have joined the select group of destinations to be awarded CPT’s Coach Friendly status, Devizes in Wiltshire and Burnham-on-Sea in Somerset.

Packed schedule of events for Arundel

Arundel Castle in West Sussex is one of the largest inhabited and complete castles in England.

Northern Ireland’s ‘Gold Coast’

Known as the ‘Gold Coast’ of Northern Ireland, North Down is a thriving borough made up of bustling seaside towns and quaint picturesque villages.

History and gardens at Dunvegan Castle

No visit to the Isle of Skye would be complete without savouring the wealth of history offered by Dunvegan Castle and Gardens.

Stars line up for Chichester

The re-opening of the refurbished Chichester Festival Theatre this July is being marked with a major new production of Peter Shaffer’s Amadeus directed by Jonathan Church with Rupert Everett as Salieri.

New-look website launched by Door2Tour

Door2Tour has unveiled a new website featuring an expanded product range, improved search and booking capabilities.