First Manchester

[Wright Eclipse]

RE: First Manchester

(21/08/2017 19:40)Dentonian Wrote:  Bearing in mind cross-subsidy is illegal under the 1985 Transport Act, there can't be any "key parts" of the network, if they are only making £400, 000 a year.

I don't know what the equivalent figure for Stagecoach is, as I can only find revenue/profit figures for "UK (regional)" and patronage figures for SGM itself. They claim patronage is 109 million, which seems a bit strange given that services have been cut - so why would loadings rise. Company wide Operating profits are 13.5% (presumably that's before tax) and a comparison with other conurbations where they operate (incl. Merseyside) suggest that Manchester fares are higher than average per mile, bearing in mind that. Concessionary make up is also higher in conurbations than in rural areas, and there is also contract revenue to add on to turnover, which I believe is close to £7 million. If we assume the average fare is, say £1.50, that suggests revenue (fares + concessionary make up + tender subsidy) of about £170 million, so with the average profit margin of 13.5%, you are looking at roundly £20 million profit before Hammond's cut. Trouble is there are so many differences in fares and patronage across the commercial network - itself a major argument for Franchising - that these figures could be way out.

I Know Cross-Subsidy is not allowed,what i ment by "Key parts" i mean routes such as the 409,180/4,17/8 will proberbly be contributing more to the the profits than routes such as 468,58 & 415 (not that these will not be making a profit,just not as much),I Might be totally wrong as the only people would know exactly would be First.

Stagecoach made £9.463m in profits for Manchester,what are still down around 5M from the year before (2015 they made 14.391m - Info from the Company house site) so are able to invest in more new vehicles per year with less a risk,as they already have the profits.