Stagecoach Group - AStagecoach Group - A Stagecoach Group is a transport group based in Perth, Scotland. It operates buses, express coaches and a tram service in the United Kingdom. Stagecoach was originally founded in 1976 as Gloagtrotter, a recreational vehicle and minibus hire business. During the early 1980s, it took advantage of the deregulation of the British express coach market, launching services from Dundee to London using second-hand Neoplan coaches, competing against the then state-owned National Express Coaches and Scottish Citylink. Stagecoach purchased several recently-privatised national bus groups from London Regional Transport, the National Bus Company, Scottish Bus Group and various city councils, as well as pursuing those that had opted for management buyouts and employee-owned corporations. During August 1996, Stagecoach acquired roughly one-third of all passenger rolling stock in the UK via the acquisition of the recently-privatised leasing company Porterbrook, it sold the company on four years later. In 1997, Stagecoach was awarded the franchise to operate the recently privatised Sheffield Supertram system. In 1998, it purchased Prestwick Airport. Following the sale of its London bus operations to Macquarie Bank in 2006, Stagecoach UK Bus concentrated on the bus market outside the UK capital. During 2007, the Virgin Rail Group, which Stagecoach held a 49% stake in, was awarded the East Midlands franchise. In July 2007, it commenced operating the Manchester Metrolink tram network. During January 2009, Stagecoach purchased Preston Bus, a former rival in the Lancashire area, but was promptly compelled to sell it by the Competition Commission. In October 2010, it expanded further by re-acquiring East London and Selkent, Stagecoach's former London bus operations. During March 2015, Virgin Trains East Coast, in which Stagecoach held a 90% shareholding, commenced operating the InterCity East Coast franchise, the franchise was terminated early three years later as it was unable to fulfil the agreed payments. During April 2019, private equity house Variant acquired Stagecoach's US division in exchange for $271 million. In April 2019, Stagecoach was disqualified from participating in three rail franchise competitions by the Department for Transport after it submitted non-compliant bids. During September 2021, it was reported that rival company National Express entered into talks to acquire Stagecoach. In May 2022, a rival takeover offer from a DWS managed investment fund bought Stagecoach. Stagecoach Group History The origins of Stagecoach Group can be traced back to 1976, at which point Ann Gloag and her husband Robin Gloag established a small recreational vehicle and minibus hire business called Gloagtrotter based in Perth, Scotland. Ann's brother, Brian Souter, an accountant, joined the firm and expanded the business into bus hire. In 1982, following the collapse of his marriage to Ann, Robin Gloag sold his ownership stake in the business and ceased any involvement. Around this time, the company would benefit greatly from the deregulation of the British express coach market in the early 1980s, specifically, the Transport Act 1980, which freed express services of 35 miles and over from regulation by the Traffic Commissioner, brought new opportunities for the company and services were launched from Dundee to London using second-hand Neoplan coaches. For a while, the company offered a very personal service with Brian Souter doing the driving and Ann Gloag preparing sandwiches and other snacks for the passengers. Between 1981 and 1985, the company grew significantly, successfully competing against the then state-owned National Express Coaches and Scottish Citylink. Stagecoach entered local bus operation with the acquisition of McLennan of Spittalfield, near Perth. Its early success allowed Stagecoach to take advantage of the privatisation of the national bus groups. Several firms were purchased from London Regional Transport, the National Bus Company, Scottish Bus Group and various city councils. The company consolidated its operations during the 1990s by purchasing ex NBC and SBG bus companies that had been purchased via management buyouts and employee-owned corporations when privatised. In 1988, Stagecoach withdrew from the long-distance express coach market, selling its operations to National Express. During the privatisation of British Rail, Porterbrook was formed as one of three rolling stock companies owning around a third of passenger railway locomotives, multiple units and coaching stock running on Network Rail's system which is leased to various train operators. Porterbrook was privatised via a management buyout before being purchased by Stagecoach for £825 million during August 1996. The acquisition garnered some public controversy and political criticism for the low value returned to the taxpayer. In April 2000, Stagecoach sold Porterbrook to the British banking group Abbey National in exchange for £1.44 billion. In 1997, Stagecoach was awarded the franchise to operate the recently privatised Sheffield Supertram system, from the South Yorkshire Passenger Transport Executive, who own the system. Stagecoach bought the remaining 27 years of a 30-year franchise in exchange for £1.15 million, wich was substantially below the anticipated £80 million that the councils had hoped to raise to help pay off the accumulated debts to build the system. The franchise, which expires in 2024, has been operated under the Stagecoach Supertram brand, the company having responsibility for the operation and maintenance of the tram system. When Stagecoach took over the system, it was struggling, both financially and in terms of attracting passengers, patronage has risen from 7.8 million recorded passenger journeys in 1996/97, to 15.0 million during 2011/12. In 1998, Stagecoach diversified into another transport sector via the purchase of Scotland's Prestwick Airport in exchange for £41 million. By the summer of 1999, the company was rumoured to have been offered some £80 million for Prestwick. In January 2001, Stagechoach opted to sell the airport for £33 million to concentrate on surface transport. On 21 November 2005, Stagecoach announced the sale of its New Zealand operations to Infratil. On 14 December 2005, Stagecoach purchased Barnsley based Traction Group (Yorkshire Traction) for £26 million, and also assume Traction's £11 million debt. Traction operated 840 buses in South and West Yorkshire (Yorkshire Traction, Barnsley & District, Yorkshire Terrier), Lincolnshire (RoadCar) and Angus (Strathtay Scottish). Traction was the largest remaining privately owned independent bus operator in the UK. Following the sale of its London bus operations to Macquarie Bank in 2006, Stagecoach UK Bus concentrated on the bus market outside the UK capital, focusing on organic growth and exploring acquisition options. In September 2005, following competition with its Megabus coach operation, Stagecoach launched a joint venture with Scottish Citylink coaches. During October 2006, a competition enquiry instructed Stagecoach to sell some of its Scottish coach services. Stagecoach was also active in the passenger rail market, having a 49% stake in Virgin Rail Group. During 2007, the group were successful in their bid for the new East Midlands franchise, which had been created by amalgamating the previous Midland Mainline franchise with the eastern part of the former Central Trains franchise. During July 2007, Stagecoach commenced operating the Manchester Metrolink tram network. In January 2009, Stagecoach purchased Preston Bus, a former rival in the Lancashire area. In November 2009, the Competition Commission intervened, ordering Stagecoach to sell Preston Bus after it had adversely affected competition in the area. In October 2010, Stagecoach expanded further by re-acquiring East London and Selkent, Stagecoach's former London bus operations. During August 2011, Stagecoach sold its Manchester Metrolink concession to RATP Group halfway through its ten-year contract to operate the network. In December 2013, Stagecoach bought King's Lynn based Norfolk Green. During March 2015, Virgin Trains East Coast, in which Stagecoach held a 90% shareholding, commenced operating the InterCity East Coast franchise. The East Coast franchise was terminated on 23 June 2018 after it was revealed that Stagecoach had overbid and were thus unable to make the agreed franchise payments. During December 2018, it was announced that private equity house Variant would acquire Stagecoach Group's US division in exchange for $271 million, the sale was completed in April 2019. In April 2019, Stagecoach was disqualified from participating in three rail franchise competitions by the Department for Transport after it submitted non-compliant bids for the East Midlands, South Eastern and West Coast Partnership franchises. One month later, the company announced that it would legally challenge the disqualification. A new set of liveries were introduced in February 2020 for British bus operations. Three colour schemes were to be used to reduce customer confusion:
During September 2021, it was reported that rival company National Express entered into talks to acquire Stagecoach Group. In December 2021, a deal was agreed between the boards of the two companies: however, it was subject to both shareholder approval and regulatory scrutiny. To satisfy the Competition & Markets Authority, Stagecoach sold Megabus, its 35% shareholding in Scottish Citylink and the Falcon Coaches part of Stagecoach South West to ComfortDelGro. Having originally recommended shareholders accept the National Express offer, in March 2022 the board of directors withdrew the recommendation in favour of a takeover offer from a DWS managed investment fund. In June 2022, Stagecoach purchased London bus operator Tower Transit's Lea Interchange garage, with Stagecoach London taking on 150 buses and 11 Transport for London bus route contracts, operations from Lea Interchange are managed under the Lea Interchange Bus Company Limited license. Later in August, Stagecoach acquired the London operations of the HCT Group after the company had fallen into administration, with Stagecoach acquiring a further 160 buses, 17 TfL route contracts and two bus garages from the acquisition. Stagecoach Group Overview Stagecoach Group Formerly: Stagecoach Group plc Stagecoach Group Type: Private Stagecoach Group Industry: Public transport Stagecoach Group Founded: 1980, 43 years ago Stagecoach Group Founder: Brian Souter Ann Gloag Robin Gloag Stagecoach Group Headquarters: Perth, Scotland, UK Stagecoach Group Area Served: United Kingdom Stagecoach Group Key People: Ray O'Toole (Chairman & Chief Executive) Stagecoach Group Products: Bus, coach, tram and train services Stagecoach Group Revenue: Increase £1,372.6 million (2023) Stagecoach Group Operating Income: Increase £77.8 million (2023) Stagecoach Group Net Income: Decrease £23.2 million (2023) Stagecoach Group Number of Employees: 24,000 (2023) Stagecoach GroupParent: Inframobility | |||||
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