Results are “in line with forecasted expectations,” Managing Director Richard Hall says
Lothian’s financial statements for 2018 have been released, which has led to an increase in the dividend to its public sector owners to £7.7m up from £6.8m the previous year.
The figures published on 13 June highlighted a 5.1% increase in turnover from £152.9m in 2017 to £160.6m in 2018.
In the last 10 years the company has generated revenues of over £1.3bn with a return dividend of £46.3m to its local authority shareholders.
2018 performance against the group’s key indicators includes:
Patronage: £119.2m: down by £1.9m
Revenue £160.6m: an increase of £7.7m
Profit before tax: £2.3m, down £7.706m
Net profit for the year: £712,000, down £6.675m
Dividend £7.7m: an increase of £0.9m
Earnings before interest, tax, depreciation and amortisation was £20m (12.5%) compared to £19.4m (12.7%) in previous year.
Jim McFarlane, Chair of Lothian, said: “Lothian continues to contribute to the local and wider economy, creating new job opportunities and investing heavily in the newest technology and vehicles for the benefit of our customers.
“I’m really pleased that our annual accounts released today demonstrate that we are continuing to grow our revenues, whilst also investing in the development and expansion of our business.
“Our performance during 2018 and effective management of increasing cost pressures also mean that we can return a £7.7m dividend to our shareholders.”
Richard Hall, Managing Director of Lothian, added: “We have continued to adapt and develop our business by reviewing new opportunities and how we evolve both our current and future public transport offerings.
“Our results for the year are in line with our forecasted expectations and significantly show an overall revenue increase of 5.1% over the previous year driven by the exploitation of growth opportunities, delivering a profit before tax of £2.3m.
“Lothian has faced significant operating and cost pressures driven by economic change and inflation. We anticipate that these cost pressures will not only remain but also increase in the future and we continue to work proactively to address and mitigate the impact of these in order to maintain our required investment and returns.”
Read more news stories here: cbwmagazine.com/category/news
