Tue, 25 Aug 2020 | ADMINISTRATION
Coventry-based bus operator Travel de Courcey has entered administration, after COVID-19 saw a huge decline in passenger numbers. The company, the Midlands’ largest privately-owned bus and coach company, has appointed Matt Hardy of Poppleton & Appleby as administrator.
The family-run company was founded 48 years ago by Mike de Courcey and employed around 180 staff. It operates services across the wider Coventry area, including routes to hospitals, schools, Coventry’s Ricoh Arena and the NEC.
The company was the first in the UK to use fast-charging electric buses and has built a reputation as an innovative bus and coach operator, receiving a Queen’s Award for Enterprise in 2017.
The COVID-19 crisis has seen a massive decline in passenger numbers and Travel de Courcey said it had “no alternative” to enter administration after running nearly empty services for months.
CEO Adrian de Courcey said: “Travel de Courcey, like every company in our industry sector, has been severely impacted by the COVID-19 crisis. We have assessed all aspects of our business going forward and it is clear that, due to the reduction in our services and vastly reduced passenger numbers, we have had no alternative but enter into the administration process.”
“This move is very much a last resort brought on by global circumstances beyond our control. We saw a huge and sudden collapse of business at the start of the lockdown and it has not improved sufficiently for us to be a going concern.”
“For example, we operate a service from Coventry to Leicester and on many days, it has run without any passengers at all. It is perfectly understandable that people have been very cautious about public transport and many of those who have returned to work have taken alternative forms of transport.”
Administrator Matt Hardy said: “Travel de Courcey is far from alone in this sector in suffering financial hardship and we will be working to salvage what we can from what is a very sad situation. We are expecting interest in certain strands of the company.”
The company did have problems that pre-dated the coronavirus pandemic. In its latest reports, to the year ended April 30 2019, the company said it had seen a challenging year following the loss of two important contracts (providing employee transport to Jaguar Land Rover and Aston Martin Lagonda) and cost pressures.
The company’s revenues declined 22.5 per cent, from £15.8 million in 2018 to £12.2 million, while gross profit fell to £894,486 from £2.8 million the year before. The company reported a loss before taxation of £2.4 million, down from profit before taxation of £523,377.
Travel de Courcey’s fixed assets at the time were valued at slightly over £2 million, down from £14 million the year prior, while current assets stood at £5.1 million, with net assets of £3.9 million.
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