A Fife bus company claims the cost of having to convert their fleet to make them LEZ compliant contributed to a substantial loss in their annual accounts.
Moffat and Williamson recorded a pre-tax loss of £255,127 to the end of November 2023, having posted a profit of more than £288,000 the year before.
A drop in Covid-support payments, plus the expenses accrued having to make their buses suitable for entry into Dundee city centre cost the business, director George Devine said.
Moffat and Williamson has operated in the Kingdom since the end of the Second World War, and has two bases in Newport and Glenrothes.
It serves routes in both Fife and Dundee, with the latter introducing a low emission zone, which sees uncompliant vehicles fined if driven on certain roads.
Moffat and Williamson in LEZ loss
As well as the expense of upgrading their fleet, the company said the continuing high cost of fuel had an impact on takings.
But, it maintained the right procedures are in place to make sure the firm can ride-out any difficulties.
A turnover of £6.8 million was reported to November 2023, up by more than £1m on the year before. It employs around 126 staff.
In the report, Mr Devine said: “The accounts for the year to November 30 2023 show a decrease in turnover due primarily to the reduction in the Covid support payments.
“Contract hire revenues remain relatively low and the majority of the trade has arisen from the school and service routes.
“Wages and salaries are high relative to turnover as the company has invested in the team to allow for increasing contract numbers in the year to November 2024.
“There has also been considerable expense undertaken to convert buses to Euro 6 emission standards and compliant with the new LEZ in Dundee, and also converting service buses to a 70-seat configuration.
“The vast majority of this expenditure is now complete.
“This has resulted in a loss of £255,127 for the year.”
Certainty for next year
Mr Devine added that because contracts for routes in Fife and Dundee had been finalised, the company is now able to look ahead to the future with some certainty.
Tenders for local authority bus routes are in place for between three and four years.
Moffat and Williamson said it would also continue to shore-up its private hire enterprise.
Mr Devine added: “The directors knew that the two years ended November 30 2022 and November 30 2023 would be difficult, given the price pressures experienced and the fact that contracts had been extended without full tenders and at only minimal price changes.
“They are content to have been able to report a very small profit for these two years combined.
“Most of the tenders for services have now been awarded and this gives some certainty for the coming three to four years.
“There are some more tenders for existing and new routes coming up which the directors will carefully consider in terms of capacity and value as always.
“The main risk for the business is increasing wage and fuel costs.
“The directors are content that all potential mitigations are already built into the business to best cope with these.”
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