Exports drive for Alexander Dennis offsets UK slowdown

Published on Thursday 16 June 2011 21:39

A SURGE in export orders helped Falkirk-based bus builder Alexander Dennis to weather a decline in the UK sector during 2010, but the firm reduced its headcount by 170 to cope with the weaker domestic market.

Turnover edged down from 290.1 million to 283.2m after the number of buses registered in the UK fell by 34 per cent, according to accounts filed at Companies House.

But the company managed to grow its share of the combined UK bus and coach market from 28 per cent to 30 per cent, taking a bigger slice of a shrinking pie and cementing its place as the UK's biggest bus builder.

Revenues from UK and Europe fell from 244.3m to 214.8m, but export orders rose by 50 per cent, with demand rising in both North America and the Far East. Pre-tax profits rose from 3.2m to 4.5m.

The company's headcount fell to 1,835 in 2010 from 2,004 in 2009, decreasing from a peak of 2,143 in 2008. Corporate affairs director Bill Simpson said the reduction was spread across the group's bus body building sites at Falkirk and Scarborough and that the total included some people taking early retirement and other posts not being filled after people left.

Simpson said: "We've been working hard behind the scenes to restructure the business and we now believe we are at a stage where the company will remain stable so we can provide work for staff at this level.

"In the good times we'll outsource some work to other UK companies in our supply chain and we'll take it back in-house if times get bad again."

The firm is taking on about 50 apprentices in the UK this year.