East Yorkshire Motor Services, now part of Go-Ahead

[Volvodart]

https://www.go-ahead.com/en/media/news/2018/go-ahead-welcomes-east-yorkshire-motor-services.html

18 Jun 2018
Go-Ahead welcomes East Yorkshire Motor Services
Hull-headquartered East Yorkshire Motor Services (EYMS), including Scarborough and District Motor Services, have been acquired by award-winning bus operator Go North East, part of the international transport organisation Go-Ahead Group Plc.

Established in 1926 and owned and operated for the last three decades by the Shipp family, EYMS transports over 17 million passengers annually, has a workforce of 700 staff and runs over 300 buses and coaches throughout Hull, East Riding and the North Yorkshire Coast.

For over 100 years, Go North East has run bus services connecting the region's towns and villages with the cities of Newcastle, Durham and Sunderland. Currently operating across Northumberland, Tyne and Wear, County Durham and into Tees Valley, it is one of 10 regional subsidiary bus companies within the Go-Ahead Group.

“We are excited to welcome the EYMS team into the Go-Ahead family,” says David Brown, Group Chief Executive of Go-Ahead. “Like Go North East, the company is well established in the local communities it serves and shares the same values of excellent customer service and strong employee engagement.

“Bringing companies like EYMS into the Group draws us ever-closer to our vision of a world where every journey is taken care of, while meeting our strategic objective of building a sustainable business that meets the needs of our customers and communities.”

Peter Shipp, Owner and Chairman of EYMS who has been with the company for 38 years, commented: “At the age of 74 and after 56 years in the bus industry I think it is time for me to hand over the business, and I am delighted to be doing so to an organisation with such a strong reputation caring for its people, customers and communities. It has the scale required to invest in the assets, both people and buses, to take EYMS forward in a healthy and successful way.”

EYMS will operate as a stand-alone company within Go North East, overseen by the Go North East executive director team.

For more information about Go North East, visit www.gonortheast.co.uk or EYMS visit: https://www.eyms.co.uk/

ENDS

 

[TheGrandWazoo]

• 18 Jun 2018
  Go-Ahead welcomes East Yorkshire Motor Services
  Hull-headquartered East Yorkshire Motor Services (EYMS), including Scarborough and District Motor Services, have been acquired by award-winning bus operator Go North East, part of the international transport organisation Go-Ahead Group Plc.
  
  Established in 1926 and owned and operated for the last three decades by the Shipp family, EYMS transports over 17 million passengers annually, has a workforce of 700 staff and runs over 300 buses and coaches throughout Hull, East Riding and the North Yorkshire Coast.
  
  For over 100 years, Go North East has run bus services connecting the region's towns and villages with the cities of Newcastle, Durham and Sunderland. Currently operating across Northumberland, Tyne and Wear, County Durham and into Tees Valley, it is one of 10 regional subsidiary bus companies within the Go-Ahead Group.
  
  “We are excited to welcome the EYMS team into the Go-Ahead family,” says David Brown, Group Chief Executive of Go-Ahead. “Like Go North East, the company is well established in the local communities it serves and shares the same values of excellent customer service and strong employee engagement.
  
  “Bringing companies like EYMS into the Group draws us ever-closer to our vision of a world where every journey is taken care of, while meeting our strategic objective of building a sustainable business that meets the needs of our customers and communities.”
  
  Peter Shipp, Owner and Chairman of EYMS who has been with the company for 38 years, commented: “At the age of 74 and after 56 years in the bus industry I think it is time for me to hand over the business, and I am delighted to be doing so to an organisation with such a strong reputation caring for its people, customers and communities. It has the scale required to invest in the assets, both people and buses, to take EYMS forward in a healthy and successful way.”
  
  EYMS will operate as a stand-alone company within Go North East, overseen by the Go North East executive director team.
  
  For more information about Go North East, visit www.gonortheast.co.uk or EYMS visit: https://www.eyms.co.uk/
  
  ENDS

Well, no one was predicting that but ultimately, it makes a bit of sense.

As he says, Peter Shipp is getting no younger. Also, it’s a tough environment and the cuts to council spending/ENCTS have impacted EYMS so that they’ve been cutting their cloth for a while.

EYMS still retains that bygone age feel and wonder if it will change (good and bad) in the same manner as Wilts & Dorset did after purchase?

 

[overthewater]

No surprises but it's a much better fit for go ahead than what been buying and does provide a chance for alot of back office cost cutting. I wonder if some more newer buses will be due.

 

[TheGrandWazoo]

No surprises but it's a much better fit for go ahead than what been buying and does provide a chance for alot of back office cost cutting. I wonder if some more newer buses will be due.

No surprise??? You didn’t predict it and you predict everything

 

[83G/84D]

No surprise??? You didn’t predict it and you predict everything

Brilliant, LOL.

 

[overthewater]

No surprise??? You didn’t predict it and you predict everything

As you said Mr shipp isn't getting younger, So it was going to happen. This has allowed him who gets it and timing of this must have all been in his side.

 

[Surreyman]

Heres hoping that Go Ahead acquire Wellglade!

 

[oldman]

Last year's accounts show an operating profit of 200K on turnover of 30M and a gloomy strategic report.

 

[overthewater]

At least it's making a profit.

 

[Volvodart]

I wonder if they were one of the companies McGills had a look at. They are around the right size for them.

 

[TheGrandWazoo]

As you said Mr shipp isn't getting younger, So it was going to happen. This has allowed him who gets it and timing of this must have all been in his side.

It wasn't a nailed on "going to happen". Remember that his son, David, took over as the the MD, there have been no murmurings within the industry and who was to say that Go Ahead would purchase them anyhow?

There have been many predictions about Go Ahead viz

"I also believe go ahead may buy the remains transdev companies in the north" or "The talk is starting to get stronger over the following: * First Scotland East, Go Ahead is looking at buy the rest of the operations" or " *(First) Somerset, Go ahead"

Last year's accounts show an operating profit of 200K on turnover of 30M and a gloomy strategic report.

That is, I suspect, the real motivation for selling up. Peter Shipp has bemoaned the paltry ENCTS remuneration (and ERC and NYCC are particularly parlous in this regard) plus the cuts to supported services have really hit revenues as well as the macro economic and operational issues that operators are struggling to cope with. Better to sell now and cash in.

Doubtless, Go Ahead will look at how they can trim overhead (can suggest a few depots that may be reduced/relocated) and also drive growth; always thought the EY marketing dept had a rather home spun feeling about it.

 

[overthewater]

Its no great surprise to my good self this has happened. Yes it could have went a number of ways including his son keeping hold of the company but I'm still not shocked. The same would apply if go ahead or trandev were to get wellglade.

What more to be said. It Mrs may stops being the pm again that wouldn't be surprising.

 

[TheGrandWazoo]

Its no great surprise to my good self this has happened. Yes it could have went a number of ways including his son keeping hold of the company but I'm still not shocked. The same would apply if go ahead or trandev were to get wellglade.

What more to be said. It Mrs may stops being the pm again that wouldn't be surprising.

So what you're saying is that at some point, Peter Shipp is going to leave this celestial world and indeed, at some point, Theresa May will not be PM. Well, I can't deny any of that - true vision....

 

[pemma]

Heres hoping that Go Ahead acquire Wellglade!

I don't imagine that would be an easy acquisition for anyone, given that would involve coming to an arrangement with both Centrebus and First Bus due to Wellglade not owning 100% of all the bus operations they are involved in, as well as Wellglade owning a cleaning company!

 

[TheGrandWazoo]

I don't imagine that would be an easy acquisition for anyone, given that would involve coming to an arrangement with both Centrebus and First Bus due to Wellglade not owning 100% of all the bus operations they are involved in, as well as Wellglade owning a cleaning company!

Not money laundering!! Here all week!!!!!!!!!!!!

There are a few complications with Wellglade and they have a different way of approaching life to EYMS.

 

[Deerfold]

I don't imagine that would be an easy acquisition for anyone, given that would involve coming to an arrangement with both Centrebus and First Bus due to Wellglade not owning 100% of all the bus operations they are involved in, as well as Wellglade owning a cleaning company!

I'm not sure they would be problems - any takeover would involve taking over the respective portions of those companies.

 

[Robertj21a]

Unfortunately, GAhead isn't all wonderful (like Brighton, Oxford etc) there's also a less wonderful side to GoAhead - East Anglia and much of their London operations springs to mind.
I guess that Transdev would be a better fit for Wellglade.

 

[overthewater]

Yea... Transdev would still rip it apart and more likely pull out for the high peaks operations for starters.

 

[pemma]

I'm not sure they would be problems - any takeover would involve taking over the respective portions of those companies.

The approach Stagecoach took with Yorkshire Traction would be an option if the interested party wanted some of the operations but not other operations. However, it would mean they would have to cost up restructuring and a future sale. However, a bigger problem might be what arrangements the potential purchasing company already has in place with other operators, which could prevent them being involved with rivals e.g. Centrebus or First.

The alternative approach is to buy one subsidiary - not the parent, as First Group did with Finglands and consequently that sale happening a few years ago means Go-Ahead can buy EYMS without it coming with some Greater Manchester operations on the side.

 

[pemma]

Yea... Transdev would still rip it apart and more likely pull out for the high peaks operations for starters.

Transpeak and Skyline sound like the sort of services which would be up Transdev's street. However, running a Solo on a council contracted service between Macclesfield and Prestbury doesn't sound like a service which would interest Transdev. There could be a solution to that though - to split the High Peak operations in to two separate companies, especially considering High Peak's area overlaps with D&G Bus' and Julian Peddle is on the board of both.

 

[Surreyman]

Transpeak and Skyline sound like the sort of services which would be up Transdev's street. However, running a Solo on a council contracted service between Macclesfield and Prestbury doesn't sound like a service which would interest Transdev. There could be a solution to that though - to split the High Peak operations in to two separate companies, especially considering High Peak's area overlaps with D&G Bus' and Julian Peddle is on the board of both.

"There could be a solution to that though - to split the High Peak operations in to two separate companies, especially considering High Peak's area overlaps with D&G Bus' and Julian Peddle is on the board of both".

Surely easier for one of the parties to buy the other out?

 

[winston270twm]

Last year's accounts show an operating profit of 200K on turnover of 30M and a gloomy strategic report.

I'm lead to believe that things at EYMS have deteriorated since the last published accounts and they have turned to loss making, there is also a rather large pension deficit to consider.

 

[TheGrandWazoo]

"There could be a solution to that though - to split the High Peak operations in to two separate companies, especially considering High Peak's area overlaps with D&G Bus' and Julian Peddle is on the board of both".

Surely easier for one of the parties to buy the other out?

Wasn’t High Peak formed from Trent’s Dove Holes ops and Centrebus’s Chapel (Bowers) depot because it wasn’t core to TB’s business?

However, aren’t we getting a little off topic?

 

[158756]

I guess that Transdev would be a better fit for Wellglade.

Pray that Transdev don't get it.

Back on topic, if EYMS aren't in great shape presumably some cuts are likely under the new ownership. Have they taken on many previously subsidised routes?

 

[Robertj21a]

Wasn’t High Peak formed from Trent’s Dove Holes ops and Centrebus’s Chapel (Bowers) depot because it wasn’t core to TB’s business?

However, aren’t we getting a little off topic?

Yes, off topic, but just to clarify.

High Peak Buses is Centrebus with Trent, all operations in practice down to Centrebus, from their depot at Dove Holes.

 

[TheGrandWazoo]

Pray that Transdev don't get it.

Back on topic, if EYMS aren't in great shape presumably some cuts are likely under the new ownership. Have they taken on many previously subsidised routes?

No, the issue is more that both ERC and NYCC have cut many subsidised routes - see https://www.eyms.co.uk/bus-services/service-information-item?id=1409 Then you have the general decline in bus ridership.

Whilst there are large depots in Hull and Scarborough, there are a number of small depots though Driffield and Hornsea have gone in recent years.

 

[pemma]

No, the issue is more that both ERC and NYCC have cut many subsidised routes - see https://www.eyms.co.uk/bus-services/service-information-item?id=1409 Then you have the general decline in bus ridership.

Councils across England are cutting or axing subsiding services as much as they can to reduce costs, consequently it's no surprise bus usage is falling.

 

[transmanche]

Back on topic, if EYMS aren't in great shape presumably some cuts are likely under the new ownership.

They may be looking to save some money by using GNE facilities for some back-office functions (e.g. accounts, HR, marketing, etc).

 

[TheGrandWazoo]

Councils across England are cutting or axing subsiding services as much as they can to reduce costs, consequently it's no surprise bus usage is falling.

It’s falling on non supported services (reduced high street footfall) and then there’s the issue of congestion pushing up costs - a toxic mix.

 

[pemma]

It’s falling on non supported services (reduced high street footfall) and then there’s the issue of congestion pushing up costs - a toxic mix.

Not sure about your area but in my area the value for money of an operator day ticket depends on the total number of routes they run (commercial or subsided.) If the bus from A to B is commercial and the bus from B to C is subsided then cutting back the bus from B or C or even awarding a new contract to a different operator to the one which runs the service from A to B, makes a journey from A to B to C a lot less attractive.