By Scott Wright
MCGILL’S Bus Service has declared it has been “greatly affected” by the pandemic and continues to “face uncertainty” relating to Covid-19, as new accounts reveal a tumbling of profits.
But the company has expressed hope that brighter times lie ahead following the recent easing of restrictions and return of workers to offices in Scotland this week.
Greenock-based McGill’s, which is owned by Sandy and James Easdale, made a pre-tax profit of £602,796 for the period from December 30, 2019 to December 27, 2020, according to accounts newly filed at Companies House. This compares with a profit of £1.36 million the year before. Turnover dipped to £31m from £36.6m.
McGill’s operates across west and central Scotland, taking in Largs, Inverclyde, Renfrewshire, Glasgow, North Lanarkshire and South Lanarkshire. It employs around 700 people.
Writing in the accounts, the directors note that McGill’s achieved a maximum of 65 per cent of pre-Covid trading in the period, during which trading was “greatly affected by the Sars-CoV-2 (Covid-19) pandemic”.
The company said government support through grants and furlough allowed it to “trade at levels in excess of the footfall being achieved”.
“The year was clearly extremely difficult and unusual in the range of challenges faced. However, much progress was made in terms of management of the risks of the pandemic upon the workforce and our customers,” the directors add.
Writing when the accounts were filed in late January, the directors state McGill’s continues to “face uncertainty” amid the ongoing pandemic, “which has impacted heavily on bus usage”.
However, managing director Ralph Roberts said there are signs business is picking up now restrictions have been lifted following the Omicron outbreak.
Mr Roberts told The Herald: “Current trading was recovering well but took a dip due to the Omicron wave. There are good signs that this is now over with passenger numbers on the increase again. Additionally, the Scottish Government’s decision to provide free travel for young people under the age of 22 commenced on Monday of this week so this scheme will hopefully see more young people choose to travel by bus and help drive the recovery for the sector.”
He added: “We are optimistic given that we usually follow what happens in England, and again, signs are positive with commuter numbers increasing this week after the ‘hybrid working’ relaxation from Monday.”
Mr Roberts noted that the bus sector will continue to be supported by the Scottish Government until April 3. He said talks have been held with officials over the provision of “some temporary transitional funding that will prevent having to cut bus routes before recovery takes place.”
Mr Roberts added: “One way or the other, McGill’s are in a strong position to adjust its comprehensive network of zero and low-emission routes to ensure sustainability and delivery of the vital services that people rely on.”
The accounts show the wage bill at McGill’s dropped over the period to £19m from £19.8m, as average employee numbers dipped to 677 from 693.
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