Billionaire Brothers' Scottish Company Posts Record Profits

Billionaire brothers Sandy and James Easdale, who own bus companies across Scotland, have posted record profits.

The former Premiership football club directors said the city firm was “in desperate need of a turnaround” when they bought it four years ago, and they have invested £30 million since.

The Easdale's Xplore Dundee bus company on Monday posted a turnover of £21.4 million for the year ended December 2024, set against £18.9m the previous year, while profit before tax rose to £5m, compared to £3.7m for the prior 12 months.

The company directors said: “Growth in passenger volumes and revenue has been driven by year-on-year improvements in service reliability and punctuality.

“There has been constant improvement in the vehicle fleet through group investment and this, along with controlling the impact of a national labour shortage, is helping to contribute to the consistency of service delivery.”

The former Rangers directors, who own McGill’s Bus Group, said their investment comes against a difficult backdrop for the city firm.

Sandy Easdale, co-owner of the McGill’s network with his brother James, said: “When McGill’s took ownership of Xplore Dundee in the midst of the Covid pandemic, it was a business that was under-invested, was in urgent need of turnaround and its previous owners were considering closure.

“McGill’s have modernised systems, working practices, facilities and rolling stock in the four years of ownership. We have invested £30m in the business since 2021.”

Ralph Roberts, McGill’s chairman, said: “These accounts are for 2024, and it needs to be borne in mind that it’s not only local service buses in Dundee that are part of those accounts.

“Inter-City express services, open-top operations in Aberdeen and Dundee and also other operations in Aberdeen are included.

“Apart from the £30m investment since 2021, we always look at the annual surplus in the round as it will ebb and flow based on investment, so it would take a four-year average as a truer reflection of the levels of profit. For example, in the last 12 month’s there has been almost £8m invested in the Dundee business alone.”

The firm has raised concerns over plans to introduce a new bus franchising model.

The directors said in the accounts: “There are several potential risks and uncertainties that could have an impact on the company's long-term performance.

“The directors are aware of the continual change in laws and other regulations and the increasing costs of compliance.

“Fuel costs represent a significant proportion of the company's cost base. Labour costs represent the most significant element of the company's operating costs. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters.

"Wherever possible, the company seeks to minimise the operational and financial impact of such events through fixed price forward contracts and other operational efficiency measures.”

I revealed in July that McGill’s wider results covering the period to December 2023 showed profits that more than doubled. The firm filed that turnover increased from £57.6m to £91.2m and operating profit increased from £720,000 to £1.88m.

This column reported earlier the company’s expansion with Fly services connecting Edinburgh Airport with Dundee and Aberdeen, while its private coach hire business is growing.

In 2023, McGill’s launched Loch Lomond Travel, a coach holiday division “that has seen rapid growth and strong demand”. The company is also the operator of FlixBus, with the international intercity service “flourishing” since its 2021 launch.

This article appeared in The Herald.