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Stagecoach co-founder Sir Brian Souter makes £40m profit on investments

Sir Brian Souter
Sir Brian Souter

Stagecoach co-founder Sir Brian Souter has made more than £40 million in the past year.

The co-founder of the Perth bus giant holds a substantial part of his wealth within Souter Investments Limited.

That includes a 16% shareholding in Stagecoach.

His family investment vehicle recorded a profit of more than £40 million.

Newly filed accounts for the year ending March 31 2021 showed the investment group made a pre-tax profit of £42.9m.

That marks a 145% increase on the 2019 figure as Souter Investments Limited posted a £95m pre-tax loss.

The results mark a return to the figures posted in 2019 when the investment firm recorded profits of £80m.

In the strategic report, director Calum Cusiter said an increase in the price of the Stagecoach shares had a “major impact”.

He said: “The group’s quoted investments are valued at £120m.

“The group’s largest single investment held is the 87 million shares in Stagecoach, which were valued at £87m.”

Mr Souter is one of the co-founder of Stagecoach.

That is a £27m rise from the 2020 valuation of the bus firm.

The investment company holds stakes in around 25 firms, with a typical investment of between £5m and £15m.

The value of the other investments also rose to £183m.

Net assets also climbed by 11% during the reporting period. That is up to £329m, up from £295m last year.

Results ‘positively impacted’

Mr Cusiter, who joined the board earlier this year, added: “The generation of new opportunities was again strong during the year.

“We continue to be rigorous in our selection of investments.

“We continue to diversify our portfolio and retain a healthy appetite for unlisted investments.

“The results for the year were positively impacted by a partial reversal of the year prior drop in the Stagecoach share price, together with net increases in the value of other investments.”

Monitoring possible Stagecoach takeover

Last month, Stagecoach confirmed it was in talks with rival National Express about a potential takeover.

The deadline for the deal, which would value Stagecoach at around £445 million, has been extended to November 16.

The strategic report said the directors would “monitor the progress of this transaction with interest” and assess how it would impact Souter Investments.

Sir Brian Souter.

Mr Cusiter added that “continuing uncertainty” around Covid-19 meant it was difficult to accurately plan for the year ahead.

“Despite the immediate challenges and risks ahead, over the longer term we believe the underlying investments continue to have strong fundamentals.

“Given our strong levels of liquidity plus the new investment opportunities that may arise out of the pandemic, we believe the group to be in a strong position.”

In 2019, Mr Souter made a charity donation of more than £100m.