tag:blogger.com,1999:blog-7432323264902617108.post3459597615959769340..comments2024-03-18T12:54:16.923+00:00Comments on Public Transport Experience: Continuing Consideration of Cornwall [6]fatbusblokehttp://www.blogger.com/profile/06833340546527596517noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7432323264902617108.post-40540279325825023062014-07-10T16:00:39.231+01:002014-07-10T16:00:39.231+01:00If the losses on that network are so high how have...If the losses on that network are so high how have other 'smaller' operators frequently been able to come in, survive and grow where First withdraw?<br /><br />Or is some it about corporate 'overheads'?<br /><br />Clive Chttps://www.blogger.com/profile/02059026405966912480noreply@blogger.comtag:blogger.com,1999:blog-7432323264902617108.post-7557376153910289622014-07-09T18:23:47.836+01:002014-07-09T18:23:47.836+01:00Oops! I should have typed that 25% increase in tur...Oops! I should have typed that 25% increase in turnover is required to bring it in to profit. I am only summarising the publicly available accounts. Presumably First are having one last go at getting things back on track hence the appointment of FBB.. SEV 777noreply@blogger.comtag:blogger.com,1999:blog-7432323264902617108.post-66238647319221563962014-07-09T17:58:12.231+01:002014-07-09T17:58:12.231+01:00Mr Fearnley may have a different opinion. Presumab...Mr Fearnley may have a different opinion. Presumably commercial confidentiality applies? What does fbb <b>really</b> know?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7432323264902617108.post-48322881494286986572014-07-09T17:48:26.674+01:002014-07-09T17:48:26.674+01:00Your comment "Indeed the interested bus enthu...Your comment "Indeed the interested bus enthusiast parachuted in from Mars would conclude that First Bus was on the verge of closing down and entering into receivership." is unfortunately rather too close to the truth. <br />The reality is that First Devon & Cornwall Limited has been insolvent for many years and only stays in business because First Group continues to bail it out by lending it money at practically zero interest.<br />It's losses for the last five years total around £19 million and it's net liabilities are £28 million.<br />First Group's problem is that they either close FDC down and write off £26 million or they try to turn it around which will take ten or fifteen years. <br />To bring it back to profitability would need roughly a 25% turnover with no additional costs. Can that be done just by improving publicity? Who knows? SEV 777noreply@blogger.com