Lord oh Lord... do we have to keep explaining this?
First are obviously going to be losing money as are Lothian. For First, it may be a point of principle. Roll over here - what's to stop anyone else from coming in and eating their lunch elsewhere? That was what used to happen when First ceded territory under Moir esp. in later years. In contrast, they've exited areas when they wanted to go.
It would seem they are modestly increasing the operations (at a marginal cost) to starve LCB. So I know you (Surreyman) hate First with a rather curious passion (like they'd deflowered your first born) but this is standard practice for most firms.
Conversely, Lothian are not £6m down. They've spent money of which a chunk is on ASSETS that they can sell, transfer, reuse etc.
No doubt that Lothian will probably be losing more money as there are start up costs that cannot be amortized or capitalised, and they are the newcomer so there's no customer loyalty/continuity. Come back in 12 months time and let's see who's doing what then?