4th Oct 2021 09:31
(Alliance News) - FirstGroup PLC on Monday said its wholly-owned subsidiary, First South West Ltd, acquired the remaining 50% shareholding in its Somerset Passenger Solutions Ltd joint venture for GBP8.4 million.
The Aberdeen-based transport company bought the remaining shares from JJP Holdings (South West) Ltd using existing cash resources, with a potential deferred consideration of GBP1.6 million if agreed conditions are met.
FirstGroup now has full control over SPS, which started as an equal joint venture to provide transport for workers employed at the Hinkley Point C nuclear power station near Bridgwater, Somerset.
As the nuclear power station grew, so did SPS. The joint venture now generates annual revenue of around GBP37.0 million and has 450 employees.
SPS had gross assets of GBP9.6 million at December 31, including 156 vehicles, and profits attributable to it of GBP4.0 million.
Last month, FirstGroup and its subsidiaries began benefiting from the UK government's GBP226.5 million support package for regional bus providers in England.
The six-month package running September to April will support bus service providers in the transition away from the Covid-19 Bus Service Support Grant, a UK scheme designed to help the firms beleaguered by the pandemic.
FirstGroup shares were down 0.7% at 89.35 pence in London on Monday morning.
By Josie O'Brien; [email protected]
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