Firstgroup, the FTSE 250 transport behemoth, has announced its acquisition of coach operator Lakeside Group, marking another step in its nationwide expansion. Lakeside, headquartered in Shropshire and Cheshire, offers bus and coach private hire services to schools and businesses.
The firm boasts a fleet of approximately 145 buses and coaches, with a minor portion of its revenue derived from tours and a small local bus operation commissioned by Shropshire County Council. In recent years, Lakeside has seen significant growth, reporting £12.5m in revenue and £2.5m in earnings before interest and taxes in the last fiscal year, as reported by .
Panmure Liberum analyst Gerald Khoo noted that the business is "delivering very attractive margins with a record of organic and inorganic growth". Neal Hall, Managing Director of Lakeside, will maintain his role overseeing the day-to-day operations, while owner Gareth Davies will continue leading the business and join Firstgroup's bus division, First Bus.
This acquisition aligns with other strategic moves made by Firstgroup in recent years to expand and diversify its bus arm, which now generates £100m in annual revenue. Firstgroup CEO Graham Sutherland commented on the acquisition, stating: "The acquisition of Lakeside, a profitable business with excellent growth potential, builds on our recent acquisitions in First Bus," and added, "The addition to our portfolio will not only grow our position in adjacent services, but it will also allow us to enter new regions which is key to the overall First Bus strategy."
Khoo further commented, "The annualised run rate of adjacent services is now about 10 per cent of divisional revenue, with margins above the divisional average highlighting the attractiveness of the business."
