Diamond Bus North West

[gilesbus1]

RE: Diamond Bus North West

(16/07/2019 20:43)motormayhem1 Wrote:  Got to consider they are buying this depot through a bank loan which as interest on top and I'm guessing it's not just 1 or 2 million they have borrowed so longer it takes to pay back then more money it costs them.
So this is extra money they have to pay out as well as upping drivers wages and then things will have to be discussed with the union which im not sure if rotala existing depots have unions in them.

Existing depots won't yet have unions as they evolved either out of coach operations (Eccles/Atherton) or new start opps. (Atherton), Bolton does, but effectively Atherton staff who go to Bolton will no doubt be recruited to the Union by members there. The garage cost which I won't but an exact figure on as i've not got it to hand was between £5m and £6m then presume the loan of assets will then be a separate cost (e.g buses being loaned off FirstGroup, thats got to be a fair amount, then buying numbers of new buses in as well, I would say it makes them ripe for takeover themselves by somebody else, when the debt can't be paid off later, me only need to look at FirstGroup to see how its going to play out. That's if it doesn't fall at some stage into receivership especially if they can't turn losses around at Bolton.

Although granted they seem to be able to squeeze a profit out of very little and it has continued to grow, but its not been out of organic growth in existing opps, but by new acquisitions bolted on. The large fleet reduction at Bolton is certainly something that doesn't look good, which appears to have no explanation, for it to only need 125 buses, yet remove Vantage and a few other contracts can't be above 50 at absolute maximum , yet there is 215 currently there, then Rotala are moving part of Atherton in and claiming to be bringing in around 35 vehicles from elsewhere, that makes 200 with Atherton so minus 40 that makes in my eyes minus 65 vehicles that's a hell of a lot of service cuts. In effect they could simply close Atherton and give all the staff based there redundancy notices. Or is that whats coming????
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