Midnight Sun
Member
- Joined
- 16 Sep 2018
- Messages
- 310
Does anyone know how much Stagecoach charged First for the sale of the class 483 units?
I believe they paid the exorbitant sum of £1 for all the trains.Does anyone know how much Stagecoach charged First for the sale of the class 483 units?
That is what Stagecoach paid in the first place for them. I'd suggest fgwrich's view of "nothing" is probably correct for the SWT to SWR transfer.I believe they paid the exorbitant sum of £1 for all the trains.
Those idiots at First! They could have bought a fleet of Concordes for that sort of money!
Ah sorry. Misunderstood the question. My badThat is what Stagecoach paid in the first place for them. I'd suggest fgwrich's view of "nothing" is probably correct for the SWT to SWR transfer.
Description of Primary Franchise Asset | Commitment not to de-designate | To Transfer to Successor Operator at Nil value |
10 x Class 483 vehicles as operational rolling stock in 2-car formation (Units 483004, 483006, 483007, 483008 and 483009). | Yes - to transfer at nil value. | |
Unit 483002 consisting of two cannibalised Class 483 vehicles as Spares. | Yes - to transfer at nil value. |
You sell valueless things for £1 for contractual reasons - you need ‘consideration’ for a contract to be enforceable by the person receiving the assets, and consideration doesn’t need to reflect the true or fair value of the goods as long as it is objectively of some value. Without the enforceable contract, there can be questions about whether or not ownership actually transferred.It's an accounting convention that depreciation of assets is down to £1 rather than zero, so if still in use they are still listed positively as assets. It's also common to thereafter sell them around at this notional £1 value as well. My hunch would be that it was £1 for each vehicle in the asset register, rather than £1 for the whole fleet. The complete spares holding was probably sold for £1 as well.
You can of course sell them for more - the scrapman may give much more than £1 for them, which forms part of the profits of the business, and if they still have a genuine value they can be sold for more as well.
Thanks @Domh245 That confirms what I thought they were, franchise assets at nil transferable value.They are franchise assets, and page 731 of the franchise agreement gives a definitive answer:
Description of Primary Franchise Asset Commitment not to de-designate To Transfer to Successor Operator at Nil value 10 x Class 483 vehicles as operational rolling stock in 2-car formation (Units 483004, 483006, 483007, 483008 and 483009). Yes - to transfer at nil value. Unit 483002 consisting of two cannibalised Class 483 vehicles as Spares. Yes - to transfer at nil value.
Slightly off topic but BA paid full price for 5 of its Concorde fleet. The £1 each was the write down value of the 2 British built unsold “white tail” aircraft and was because BA agreed to take on half of all Concorde support costs (the U.K. half). This was when BA decided to market Concorde to make it profitable.I believe they paid the exorbitant sum of £1 for all the trains.
Those idiots at First! They could have bought a fleet of Concordes for that sort of money!