The current West Midlands bus network operated by National Express will be ‘preserved’ until the end of the 2024 financial year, despite NX Bus and its parent company Mobico recording losses for the first half of 2023.
Route-One reported today:
Meanwhile, NEWM has reached agreement with the West Midlands Combined Authority and the Department for Transport (DfT) on funding that, when combined with a recent fare increase, will enable preservation of the operator’s current network to the end of FY2024.
It it thought that this money is part of the Bus Service Improvement Plan (BSIP) allocation to the West Midlands. Such use was enabled by a recent DfT change of policy away from a previous approach of mandating that BSIP funds could not be used to support existing services. The West Midlands was not among areas in England to receive a first-year BSIP Plus allocation.
Commercial patronage on NEWM services is now above 97% of 2019 levels. Mobico expects that no further revenue support will be needed beyond the current agreement.
“Tom Stables and David Bradford leave National Express” – Route-One, 28th July 2023
This is good news then, as it means we’re not likely to see any major service cuts or withdrawals until 2025 – unless I’m misunderstanding how the ‘financial year’ works! – and there are signs that passenger numbers are recovering significantly.
But this is why bus fares had to increase. I’ve seen comments elsewhere from people blaming the recent driver’s pay increase for this, but it is simply not true. Wage increases will of course add to the operating costs of any business, but also consider that due to inflation, many other costs have also increased.
People may remember the bus strikes that took place earlier this year, where the local media unquestioningly parrotted the claims made by the Unite union of NX West Midlands making ‘millions of pounds of profit’, based on the 2022 financial performance of the whole National Express Group (rebranded as Mobico earlier this year), of which the UK bus operations made a very small contribution, as ‘justification’ for their increased wage demands.
The above Route-One article neatly summarises the half-year report for 2023, and suddenly we have a different picture. The report begins by announcing that both Tom Stables and David Bradford will both be leaving National Express UK.
That change was announced by parent Mobico Group CEO Ignacio Garat at an investor conference following publication of Mobico’s results for the six months to 30 June, a period that saw a group loss after tax of £39.4 million on revenue of £1.57 billion. Mobico is the renamed National Express Group business, although the National Express brand is retained in the UK.
Mobico revenue was up significantly from the £1.32 billion of H1 2022, but Mr Garat notes that cost pressures and a reduction in government recovery funding led to a reversal of the £15.2 million group profit after tax for that earlier period. H2 2023 is expected to perform better than H1, the group says.
Combined National Express operations in the UK delivered H1 2023 revenues of £285.4 million and an adjusted operating loss of £10.8 million. Industrial action at NEWM cost up to £3 million, according to Mobico Chief Financial Officer James Stamp.
“Tom Stables and David Bradford leave National Express” – Route-One, 28th July 2023
Like all other bus operators in the region, despite their size, NX Bus are also struggling to keep services viable. Yes, they are a big company that dominates the West Midlands bus market, and I know there are many people who would take great pleasure at seeing their demise, but who would replace them?
Sometimes you have to be careful what you wish for, because you might end up with something worse.
Weird Richard as it was TfWM who rerouted the 55 as 54a down Smethwick High St not NX where it is now running around empty helping nobody and away from the sloped roads where I am and most elderly and disabled are which are badly in need of more bus links and who have longer more arduous walks to alternatives when there are plenty of 87s and 80s going by St Pauls Rd but you and TfWM dont care about people like us eh? 🤔🤦♂️
Yet you love Blackheath and Langley giving them loads of services to them leaving us in vast majority of internal Smethwick with no Bearwood or Oldbury buses at all. Seems some areas Richard matter more to TfWM eh Richard….🤔
🤦♂️ and Smethwick bus usage is down since all the Smethwick to Bearwood buses were axed including you taking 55 Diamond bus from us leaving us with barely a service and hard to connect to other services. No wonder numbers are low. Vast majority of elderly and disabled I know shop in Bearwood and Oldbury without even an hourly service and centres like Bearwood suffering with lack of users in shops and banks having to close and nobody being able to access Smethwick High St for trains jobcentre or main library without struggling on two buses for somewhere ‘up the road’ total joke. A guy told me it was ridiculous you can get to Wolverhampton and virtually everywhere else from Bearwood but not Smethwick High St and Galton Bridge. Now there are huge traffic issues as people have to drive. But that doesnt matter does it Richard 🤦♂️ best connected networks?when people by me cannot even reach the Hawthorns or Galton Bridge 😂
As someone who uses National Express West Midlands 7 days a week it is good riddance to David Bradford & Tom Stables. NXWM are quite possibly the worst bus company in England for customer service and punctuality. It cares nothing about it passengers and staff and provides the West Midlands with basically a third world service. After the next Mayor Elections whatever party wins powers will be switched to Transport for West Midlands which will allow full control over bus services in the West Midlands Combined Authority. Given if like me you use Soho Rd, Dudley Road, Hagley Rd, Pershore Road & Bristol Road services regularly its clear patronage is well above pre covid levels but you would never know it from Mobico PLC. Frankly I cannot see a viable long term future for West Midlands Travel Limited the sooner Birmingham is rid of this monothltic dinosaur the better & gets the bus network it deserves at the hands of TfWM.
The 21st April 2024 could be the key date. Looks like NXWM’s financial year ends on March 31st each year, so if there are any major revisions they will take place that day. The third Sunday in April each year is also when a lot of TfWM tenders run to. Don’t believe things will last as they are until 2025, especially as buses will be a low priority for whatever new Government is in office then.
Tom Stables and David Bradford going at the same time is more of a key take and is almost certainly down to the industrial action earlier this year. It leaves the NX Bus Division leaderless at a key time and I suspect the new NX Bus MD will come in from outside. We may well be saying “it was better the devil you knew” in a few months time once they get to work.
I am not someone who favours one bus company over another. I am simply just an avid bus user who has learned a lot over the years.
So from a bus users point of view:….
NXBus are not as bad as some people would have it.
When you compare it to other bus companies around the country. We would either have far worse ‘operations’ or ticket prices that are far higher, with less services.
Look at both the Cannock or Tamworth areas as examples.
Chaserider, with what looks like mainly a hand-me-down second hand fleet, or Arriva who have invested in a fleet of first hand buses, but charge way more for ticket prices. An Arriva Regional Day saver is about £6.80, for what looks like a much smaller network than NXbus have.
I would argue the West Midlands TfWM area, has the best connected networks, with good value for money and a modern, bought from new fleet, with fully integrated Weekend and Public Holiday services, this is down to a combination of factors. Such as how Competition has helped to drive down ticket prices, while driving up vehicles standards. Partnership working between TfWM, NXbus and companies like Diamond etc. Compare this to other areas of the Midlands and then start to complain that NXbus are the worst operator ever.
If anyone uses either the Soho Road, Dudley Road, Hagley Road, Bristol Road or Pershore Road services you would quite simply laugh in the face of Mobico PLC as patronage on these core services easily outstrips pre pandemic levels.