FirstGroup acquires coach operator Anderson Travel

FirstGroup has bought coach firm Anderson Travel for an undisclosed fee, bolstering its FirstBus division.

Based near London’s famous Tower Bridge, Anderson operates around 40 coaches of various sizes out of Central London and Heathrow Airport depots.

Among the services it provides are contracted school, mini-coach, private group tours, and a day trip excursion programme aimed at international tourists.

Acquisition: FirstGroup has bought coach firm Anderson Travel for an undisclosed amount to help bolster its FirstBus division

In the year ending June 2023, it achieved £7.3million in revenues and £1million in earnings before interest and tax.

Gerald Koo, a research analyst at Panmure Liberum, estimates FirstGroup spent a ‘high single-digit million figure’ on the acquisition of Anderson, based on the latter’s historical financial performance. 

Mark Anderson, the group’s founder and majority owner, will remain in charge of its day-to-day operations while it is integrated into First Bus.

FirstGroup’s latest takeover comes after it bought York Pullman, which comprises five coach services brands, in March and Essex-based Ensign Bus last year.

Graham Sutherland, chief executive of FirstGroup, said the deal ‘builds on our recent strategic acquisitions in the B2B and B2C coach market’.

He added: ‘We will continue to identify and assess opportunities to diversify and grow as we increase our share of the adjacent services market in the UK, where we see considerable opportunity for stable, long-term and value accretive growth.’

FirstGroup has been expanding its coach operations amid expectations that the new Labour Government will renationalise Britain’s railway network.

The Aberdeen-based firm runs three major train operators – Avanti West Coast, Great Western Railway and South Western Railway, as well as the open-access rail services Lumo and Hull Trains.

In the last fiscal year covering the 12 months ending March 2024, its First Rail arm reported around £3.7billion in turnover and 274 million passengers, a 10.9 per cent increase on the previous year.

While the company’s FirstBus division only made £1billion in revenue, it attracted 424.4 million passengers, equivalent to 1.1 million journeys per day.

According to FirstGroup, the bus division operates over 4,800 buses, employs about 13,500 people, and serves more than a fifth of the UK population.

FirstGroup shares were 0.7 per cent up at 140.3p on Monday morning, yet they have fallen by around 20 per cent this year.