Profits up at Arriva as it eyes Connexxion
DESPITE AN increase of £7million in fuel costs, Arriva managed to increase the operating profit made by its UK bus division in the first six months of 2006 by £1million to £31million on a turnover of £365.2million, up from £338million. The group’s total pre-tax profit was £48million, compared with £47.8million in the same period last year. Group turnover was £860.7million, up from £772.1million.
So far this year Arriva has expanded its bus interests in Portugal and Germany, and the group has signalled its interest in Connexxion, the state-owned transport business in the Netherlands which is due to be privatised. Says chairman Sir Richard Broadbent: "We will consider bidding for all or part of the business in due course."
Rival group First has also expressed an interest in the Connexxion business.
The Arriva Bus and Coach dealership made a reduced profit of £1.7million (2005: £2million), on revenue which was down almost 10 per cent at £8.6million from £9.5 million in the first half of 2005. Arriva describes this as "a satisfactory result in a highly competitive market".