Autotrans Group

Aug 23, 2017

Jonathon Manning Arriva acquires Croatian bus company to grow European base North East transport giant Arriva has expanded its European operations after acquiring a controlling stake in Croatia’s top ranking private bus company . The deal has seen Sunderland-based Arriva acquire 78.34% of Autotrans Group, which is one of the largest bus operators in Croatia. Arriva Group CEO Manfred Rudhart said: We are always looking for opportunities where we believe our experience and skills can make a real difference to passenger transport services in Europe. Croatia, and more broadly Central and Eastern Europe, represents an important growth opportunity for our expanding business and the Autotrans Group represented a good strategic fit for us. We will now focus on doing what we do best, which is to drive improvements for our customers in the region. The investment is the latest to be carried out by Arriva in Europe, as the company looks to grow its European business. In 2016 the company had revenues of over €5bn and invested €359m in its European arm. Arriva has been present in Croatia since 2013 and the firm said its deal with Autrotrans signalled its “commitment to improving public transport services in the country”. Drazen Divjak, managing director for Arriva Croatia, said: Autotrans is a highly-respected bus operator in Croatia with nearly 70 years of experience. They have successfully built a reputation for reliability and a strong customer service ethos and we are keen to build on their success. We have a strong track record for delivering real benefits to passengers and tendering authorities, and this acquisition allows us to expand our operations to create a robust network across the country and deliver improved, better connected door to destination services for our passengers. Arriva chief executive Manfred Rudhart 8:52 KEY EVENT Miller Homes to create 584 homes in the North East Miller Homes is set to build 584 homes across the North East after appointing a new regional managing director to head up the developments. Patrick Arkle will now lead the company’s North East operations, as it embarks on plans to build homes on three new sites. The new homes will be built over the next six years at developments at Handston Road in Hadston, Victoria Road in West Hebburn, and Acklam. The new projects will lead to the creation of 140 jobs and safeguard a further 80. At the same time that Mr Arkle was promoted to regional managing director, the firm also promoted associate directors Mark Bayliss and Andrew Finnigan to technical and commercial directors respectively. Mr Arkle said: As our portfolio of developments continues to increase we are looking to upskill and develop our team over the coming months, which is already made up of some extremely talented individuals including Mark and Andrew. We also have a number of new appointments on the horizon. As part of our dedication to building quality new homes whilst creating sustainable communities in desirable locations across the North East of England, we have set out ambitious plans to complete nearly 400 homes in 2017 and to increase this figure to 600 new homes per year by 2019. Miller Homes has unveiled plans for 584 new North East homes as it promotes Patrick Arkle to regional managing 8:47 Jonathon Manning Advertising giant WPP cuts revenue forecasts amid pressure on client spending WPP has cut its full-year revenue forecasts after slowing demand from consumer goods firms in the second quarter dented its interim performance. The advertising giant posted a 1.9% rise in revenue to £7.4bn in the first six months of the year, but like-for-like net sales fell 0.5%. The company, headed up by Sir Martin Sorrell, said it saw pressure on client spending in the second quarter, particularly in the fast-moving consumer goods sector. As a result, WPP forecasts that full-year like-for-like revenue and net sales will come in between zero and 1% growth. It had previously pencilled in 2% growth. Current trading is also challenging, WPP added, with all regions - except the United Kingdom, Latin America and Central & Eastern Europe - showing lower revenue in July compared with the same month in 2016. The company said “all sectors were down”, with advertising and media investment management and data investment management the most affected. WPP said: Competition is fierce and as image in trade magazines, in particular, is crucial to many, account wins at any cost are paramount. There have been several examples recently of major groups being prepared to offer clients up-front discounts as an inducement to renew contracts. Sir Martin Sorrell, CEO of WPP (Image: Philip Coburn) 8:42