Bus-maker Alexander Dennis takes Australian hit from Custom Coaches

Falkirk bus manufacturer Alexander Dennis fell into the red last year after booking losses and impairments on the value of its administration-hit Australian business.

Sydney-based Custom Coaches, which Alexander Dennis bought in a £25 million deal two years ago, was forced to call in the accountants amid difficult trading conditions down under.

But Dennis hailed a “strong underlying performance”, which limited overall losses in the period to £1.2 million despite the £32.1m hit from Custom.

The group posted a 12.5% increase in revenues despite the anticipated softening in the wider UK market in the aftermath of the London Olympics. Sales at Dennis slipped just 2%, outperforming a sector in which new registrations fell 9%.

But overall sales in the firm’s international business rose 39%, with Asia Pacific the main driver.

In March the firm received £100m orders from both Stagecoach and National Express.