Ellesmere's Lakeside coach firm bought by FirstGroup

Lakeside Group provides school, business and private hire services, with a fleet of 145 buses and coaches.

FirstGroup PLC, which is based in Aberdeen, said by complementing the recent additions to its First Bus portfolio, the latest acquisition will allow the company to grow its coaching business and offers the potential to increase its presence in the West Midlands.

Lakeside operates primarily from a central, owned depot in Ellesmere and from five smaller depots – one owned in Shrewsbury and the others leased - in Shropshire, Telford and South Cheshire.

The majority of Lakeside’s revenue is derived from school and private hire contracts, with the remaining revenue coming from tours, a small local bus operation under contract to Shropshire Council and business to business operations.

The business has grown significantly over recent years, both organically and inorganically, and has retained strong levels of profitability. For the year ended March 2024, Lakeside delivered revenues of £12.5 million and earnings before interest and tax of £2.5 million.

Neal Hall, the managing director of Lakeside, will continue to manage the business on a day-to-day basis.

Gareth Davies, the owner of Lakeside, will continue to lead the business and will support the ongoing development of its wider coaching strategy.

The acquisitions made by FirstGroup in recent years now represent combined annualised revenues of £100 million and earnings after tax of £13 million, the company said.

Graham Sutherland, FirstGroup chief executive officer added: “The acquisition of Lakeside, a profitable business with excellent growth potential, builds on our recent acquisitions in First Bus.

"The addition to our portfolio will not only grow our position in adjacent services, but it will also allow us to enter new regions which is key to the overall First Bus strategy.”