Thamesdown Transport (Swindon) sold to Go-Ahead

[whole diary]

[bobm]

Much speculation in the Swindon Advertiser that Thamesdown Transport may be about to be sold off.

THAMESDOWN Transport has refused to comment on rumours that the bus company is to be sold.
The company is fully owned by Swindon Borough Council and it is believed an emergency meeting will be held this week to decide its future.
The company’s financial difficulties have been well reported in recent years. In 2014 it suffered a huge financial loss of nearly £400,000, £30,000 more than expected, which was put down to an increase in driver’s wages and the need to fix an ageing fleet of buses.

A statement in Swindon Borough Council’s 2015/16 accounts reads: “Thamesdown Transport trading conditions continue to be challenging, and should the organisation face financial difficulties in the future, elected Members would state the degree of commitment of the Council and the Council’s willingness to meet any accumulated losses would be established at that time.”
Despite that, councillors insisted it had a “bright future”.

Thamesdown Transport is operated as an arms-length company, which means while the council is the sole owner, it does not have a say in the day-to-day running.

It is rumoured that public transport providers Go-Ahead have shown an interest in acquiring the company, though they too refused to comment.

Founded in the 1980s, Go-Ahead has been transformed from a small bus operator in north-east England to an organisation providing more than a billion journeys by bus and by rail each year.
The question over the Swindon company's future comes just over a week after Thamesdown announced the largest overhaul of its bus services in over a decade across Swindon.

Thamesdown’s commercial director Peter Oliver was keen to stress the benefits brought to customers by including a direct connection between Highworth and the Orbital Shopping Centre and a bus to the Great Western Hospital every ten minutes.

He said: “The thing I am most excited about is the service running from Highworth and Orbital because that is completely new and hopefully it will be a success.

“It is in the interests of the company, its workers and passengers to run a network that people want to use and are happy to use and we hope these changes encourage that.”
The company was formed by the former Thamesdown Borough Council as required by the Transport Act 1985.

Anyone who has further information is asked to contact the newsdesk on 01793 501774.

[bobm]

It seems the speculation was true - hence moving this thread from "The Rumour Mill"

From Swindon Advertiser

New managing director of Thamesdown Transport named after Go South Coast takeover

THE financial plight of Thamesdown Transport was so serious that the council was urged to sell the company by March or risk it collapsing, according to information which has now come to light.
On Wednesday evening, senior Swindon borough ouncillors met behind closed doors to approve an offer from the Go Ahead group worth £7.2m.
The sale of Thamesdown Transport’s Barnfield Road depot was also approved with a separate price tag of £4m.
The deal with Go South Coast, which operates a number of south coast bus and coach companies, was officially signed yesterday.

The decision to sell the council-owned bus firm was taken amid concerns about its future financial viability.
Poor performance figures have been publicised before but now the Adver can reveal just how serious the problems were at Thamesdown.
Negotiations over the future of the company have been shrouded in secrecy, staff have been threatened with dismissal and the council has conducted their business behind a confidentiality shield.

Thamesdown bosses and council officers were concerned that should the scale of the financial woes become public prior to a deal being completed, rival firms might move in in a hostile manner.
The company was on track to record a loss of £149,000 at the end of the current financial year — this would have taken its combined losses over the past five years to almost £2m.
An annual management fee that Thamesdown was supposed to pay the council was waived in 2013/14 and no payments have been made since.
With the future looking similarly bleak and with no clear path to profit, the council sought expert advice last year on what to do next.
They were urged to sell the company, to do so as soon as possible, and certainly before the end of March.
Accordingly, bids were sought from established bus operators around the UK^▸ (United Kingdom) and of those that came forward, Go Ahead’s was the most attractive.
The Adver understands that the initial offer was in the region of £8.5m.

But due diligence visits later uncovered staff shortages in the engineering and cleaning departments, issues with cleanliness, faults with equipment and mechanical problems with vehicles that all pushed the value down to the £7.2m agreed by the cabinet on Wednesday.
That figure was expected to fall slightly further still prior to the signing of the deal depending on the final position of the company.
But while the council may be getting in the region of £7m initially, by the time financial obligations and pension requirements left behind by Thamesdown are accounted for, only about half of that, between £3m and £4m, will remain.
The separate £4m from the Barnfield Road depot sale is expected to be reinvested as part of the council’s commercial investment strategy.
As part of the deal, the council has sought assurances that Go Ahead will not sell the depot within the first five years.
Existing routes are expected to continue as advertised, services funded by the council will carry on in accordance with the local bus strategy agreed last year.
Swindon Borough Council said today that councillors agreed to sell the council’s shares in Thamesdown and to sell the bus company to Go South Coast at Wednesday night’s Cabinet meeting to "ensure Thamesdown Transport has a sustainable future".
A spokesman said: "The bus company has incurred losses over the past five years due to difficult trading conditions, despite continued financial support from the council.

"And with the council also facing challenging financial pressures of its own, a review of the bus company concluded that the sale of Thamesdown Transport to an established operator would be in the best interest of council taxpayers, Thamesdown’s staff and its customers.
"Following a competitive process Go South Coast’s bid was assessed as offering the best value to the Council, which wholly owns the company.
"The offer from Go South Coast, the terms of which are commercially confidential, was for all the cuncil’s shares and the freehold of Thamesdown’s Barnfield depot."
Coun David Renard, leader of Swindon Borough Council, said: “We were one of the few local authorities in the country to still own a local bus company, but the council is operating in a really challenging financial climate at the moment and we do not have the resources to continue to support Thamesdown Transport as we have been doing in recent years.
“We have had to change the way we provide services across the council while balancing the ever increasing demand on adults’ and children’s services.
“We believe this deal is in the best interests of local bus users as it secures the financial sustainability of the bus company, offers the best long-term security for Thamesdown Transport’s employees, and will provide vital investment.
"Go South Coast’s expertise will also ensure customers continue to benefit from a high quality bus service.

“The council will arrange a joint meeting with Go South Coast and bus user groups in the coming weeks so customers have the opportunity to learn about future investment plans and raise any issues or concerns that they may have.”
Go South Coast managing director Andrew Wickham said today: “This is an excellent opportunity for us to develop the services on offer to local people here in Swindon and north Wiltshire.
“We’re keen to point out that it’s business as usual as far as our customers are concerned. Any tickets or passes they have will still be valid, and our 85 buses will continue to serve existing routes with no change to timings.
“That said, our ultimate aim is to enhance the services on offer here. As part of this, we will be consulting with local people and listening to the needs of those who travel on our buses.
"Our team will be engaging with representatives of local bus users about our plans to invest in local services.
“We are excited to be providing vital sustainable transport in this region, and I have no doubt our talented team will make a complete success of our new venture. 
“I look forward to meeting with our local customers and hearing their views over the coming weeks and months."
The firm has appointed Alex Chutter, currently operations manager at sister company Salisbury Reds, to take the reins at Thamesdown as general manager. 
For more information about Thamesdown, visit thamesdown-transport.co.uk

[JayMac]

Another municipal gone.

That leaves just six wholly municipal bus companies in England.

[Ralph Ayres]

Go-Ahead generally seem good at buying well-run companies and broadly giving the management the flexibility and authority to carry on doing what they were doing well but with the backing of a larger organisation. It's often hard to tell that anything has changed, unlike say First or Stagecoach who immediately apply the corporate livery and style.  Carousel in High Wycombe and Metrobus in Crawley spring to mind. It looks as though this may be a little different.

[JayMac]

Other Go-Ahead purchases have seen rebranding though. Wilts & Dorset was rebranded to 'More' and 'Salisbury Reds'. Solent Blue Line to 'Bluestar'. Western Greyhound to 'Go Cornwall Bus'. Although that last one was probably a necessary rebrand following the demise of WG.

So, its perfectly possible that Go-Ahead will rename and rebrand Thamesdown Transport. I've always thought it a rather unusual name for buses in Swindon. A town not really associated with the River Thames. I know the name is a hangover from the local government reorganisation of 1974, chosen to reflect the uplands in the north of the borough, but I think a more 'Swindon' name would be appropriate.

'Brunel Buses' perhaps. 

Or perhaps named after another famous Swindonian. 'Fluck Buses'. 

[froome]

Another municipal gone.

That leaves just six wholly municipal bus companies in England.

Which are?

[bobm]

In England
Blackpool
Halton
Ipswich
Reading
Rossendale
Warrington

In Wales
Cardiff
Newport

In Scotland
Dumfries & Galloway
Edinburgh

[JayMac]

England:

Blackpool Transport
Halton Transport
Ipswich Buses
Rosso (Rossendale Transport Ltd)
Reading Buses
Network Warrington

Nottingham City Transport isn't wholly municipal. 18% is owned by Transdev.

Wales:

Cardiff Bus
Newport Transport

Scotland:

Lothian Buses (Edinburgh and East, West & Mid Lothian)
DGC Buses (Dumfries & Galloway) (although this one was set up solely because D&G Council could not find an operator to accept tendered services)

[Zoe]

If the Commons reverse the amendments Lords made to the Bus Services Bill then once a municipal is gone it will be gone forever since local authorities will be banned from setting up new companies.

[TaplowGreen]

Another municipal gone.

That leaves just six wholly municipal bus companies in England.

I "fondly" remember them transporting me to Kembrey Park once a fortnight or so from Swindon Station!

[bobm]

Another municipal gone.

That leaves just six wholly municipal bus companies in England.

I "fondly" remember them transporting me to Kembrey Park once a fortnight or so from Swindon Station!

Not so easy now - since last month only a morning and evening peak service.

[TaplowGreen]

Another municipal gone.

That leaves just six wholly municipal bus companies in England.

I "fondly" remember them transporting me to Kembrey Park once a fortnight or so from Swindon Station!

Not so easy now - since last month only a morning and evening peak service.

   if memory serves when I used it there were only 3 in the morning & 3 in the evening. V reliable though.

[LiskeardRich]

Other Go-Ahead purchases have seen rebranding though. Wilts & Dorset was rebranded to 'More' and 'Salisbury Reds'. Solent Blue Line to 'Bluestar'. Western Greyhound to 'Go Cornwall Bus'. Although that last one was probably a necessary rebrand following the demise of WG.

The last being necessary as WG were still operational at that time and the south east Cornwall sale to go ahead along with 8 buses provided capital allowing the rest of WG to continue operating, albeit for only a few more months. The remainder of WG was then sold a few weeks later and that lasted around 8-10 weeks under the new owner until they couldn't afford the insurance renewal!

Plymouth citybus is an excellent operation and presentation of their vehicles is always excellent.

[simonw]

Interestingly, Bristol ceased to have a local bus company from 1948, when it was nationalised by the government.

Why would the government nationalise a local bus company ... well their manager in the 1st World War (George White) started an airplane company, and built a local railway to connect facilities together. Very enterprising!

[bobm]

First..er.. change announced by the new management, drivers will start giving change again from next month

From company website.

Change is coming!
Thursday, February 16 2017

We will be scrapping the exact fare policy for customers travelling on our buses.

New general manager, Alex Chutter, commented: “Since Thamesdown became part of the Go Ahead Group, we have spent a lot of time talking to both our customers and our colleagues, to see how we can make travelling with us easier. 

“It is clear to us that some potential customers may have chosen not to travel with Thamesdown in the past because they didn’t have the exact change for their journey. 

“As a result of this feedback, we plan to rectify this as soon as possible, by moving away from the current exact fare policy. 

“This will take effect over the coming weeks, whilst our team installs the equipment necessary. During this time, we ask our customers to bear with us and bring the exact change with them, just in case.

“From Sunday 26 March all our drivers will be ready and willing to issue change whenever required. 

“This move is designed to make our buses more accessible, and is just one of the improvements we intend to introduce for our customers over the coming months.”

We will of course, keep this page updated as and when we have more news for you.