Bus ireann Annual Report and Financial Statements 2016
Bus ireann A
nnual Report and Financial Statements 2016
http://www.buseireann.ie
Cras Iompair ireann would like to acknowledge funding on major projects by the Irish Government under the EU and by the Infrastructure and Capital Investment 2012-2016 Medium Term Exchequer framework.
Cras Iompair ireann would like to acknowledge funding on major projects by the Irish Government under the EU and by the Infrastructure and Capital Investment 2012-2016 Medium Term Exchequer framework.
ContentsFinancial and Operating Highlights 2016 1
Bus ireann Strategy 3
Company Highlights and Key Messages 4
Chairmans Statement 6
Operations Review 8
Directors and Other Information 21
Directors Report 25
Directors Responsibilities Statement 33
Independent Auditors Report 34
Profit and Loss Account 35
Statement of Comprehensive Income 36
Balance Sheet 37
Statement of Changes in Equity 38
Statement of Cash Flows 39
Notes to the Financial Statements 40
Financial and Operating Highlights 2016
Operating Revenue
2016313.8m2015303.0m
Average Number of Employees
20162,53220152,487
EBITDA before Exceptional costs
20160.01m20152.00m
Number of Customer Journeys
201680.2m201578.9m
Contractors
2016136.3m2015127.7m
Deficit for the year
20169.5m20156.0m
Payroll and related Costs
2016134.2m2015130.3m
Contribution to Exchequer
201660.2m201559.3m
Special Needs Children carried in 2016
c.12,000
Schools served in 2016
c.3,000
Children carried daily on schools services during 2016
c.116,000
1
Chairmans Statem
entReview
Financial Statements
Highlights
2
Bus ireann Annual Report 2016
2
3
Bus ireann Strategy
Bus ireann Visionl To provide safe, innovative and customer centred transport management solutions to world class standards.
Bus ireann Missionl CraftBusireannsfutureinaprofitable,sustainableandsafemanner.
l Achieve this by exceeding customer expectations, maintaining a competitive cost base, making best use of our public transport and network management skills, and making better connections with customers, stakeholders and communities.
Bus ireann Valuesl Safety: Bus ireann prioritises safety and high standards in safety management systems for its customers,
employees and road users in general.
l Employees: Bus ireann invests in the the welfare and competency of its employees, as they are vital to providing excellent public transport services.
l Customers: Bus ireann commits to building on a strong tradition of providing safe, reliable and innovative services to customers.
l Integrated National Network: Bus ireann provides an integrated national network of public transport services that links all communities from a social and economic perspective.
Bus ireann Objectivesl Develop a sustainable business structure through capital investment, product development, and revenue
and passenger growth, while maintaining high safety standards.
l Build trusted and recognised services with the customer as a central focus.
l Maintainacompetitivecostbasethroughincreasedoperationalefficiencies
l Engage with employees to ensure commitment with the right skills and competencies.
l Strengthen relationships with customers, business partners and public transport stakeholders.
Bus ireann Strategy Initiativesl Expressway and Commercial Services: Competitively reposition Expressway and other commercial brands
throughservice/qualityimprovements,investmentinfleet/technologyandcustomerfocusedmarketing/pricingtactics in Ireland and internationally.
l PSO Services: Deliver best value for money for the shareholder under Direct Award PSC through service expansion, costoptimisationandappropriatefleetinvestment.
l Schools Transport: Buildonexistingoperationalefficienciesandnetworkeffectivenesstoensureshareholdervaluewithappropriatefleetinvestment.
l Making Better Connections: Implement a strategic communications programme with customers, employees and stakeholders.
l Growth Partnerships: Support the development of a long term development plan for PT services outside the Dublin Metropolitan Area (DMA) in partnership with all stakeholders.
Bus ireann Annual Report 2016Chairm
ans Statement
ReviewFinancial Statem
entsH
ighlights
Company Highlights and Key Messages Financiall Market conditions remained challenging particularly
on commercial routes driven by increased competition, and higher costs
l Deficit after exceptional items of 9.5m (2015: Deficit 6.0 million)
l Net assets: 6.8 million (2015: 16.3 million)
l Road passenger journeys increased by 4.8% to 39.7 million
l City service passengers increase 6.3%
l Commuter and inter city services increase by 3.2%
l PSO subvention amounted to 41.9 million in 2016 (2015: 37.8 million including revenue grants of 4 million)
l New fleet investment increased by 12.5 million to 28.3 million
l Business recovery plan agreed by key stakeholders post year-end
l Invitations for the tendering of Waterford City and Dublin Commuter bus services issued by the National Transport Authority (NTA).
Bus ireann Annual Report 2016
4
School Transport Schemel 116,000 children carried daily across the country
l 6,500routesto3,000schoolsoperateddaily
l 12,000 special needs children provided with door to door transport service
l 90%ofservicesarenowoperatedbyprivatecontractor buses
l Key safety messages continue to be promoted
Customerl A dedicated Customer Care Team was augmented
to improve the quality and response times to customer queries
l Thecentralisedteamallowsdedicatedstafftorespondto customers issues and queries
l Operational improvements continue with the roll-out of Real Time Passenger Information (RTPI) displays at bus stops in various locations nationally
l Ongoing investment made in 2016 to provide a state-of-the-artfleetthatdeliversonkeycomfortexpectations
l On-going engagement with the NTA and local authorities regarding new bus stop development and bus priority measures
Awards, Accreditations & Achievementsl Bus ireann awarded Passenger Transport Company
of the Year accolade
l Progressed ISO50001 accreditation under the guidance of Sustainable Energy Authority of Ireland (SEAI)
l ParticipatedinCEM(CertifiedEnergyManager)programme
l AllnewbusfleetcomplywithlatestEuroVIemissionregulations
l FirstIrishPSVOperatortotrainemployeestotheInstituteofVehicleRecoveryITTSARStandards
l Winners in the Road Safety Authoritys Road Safety Awards Leading Lights campaign
Safety & Safety Innovationl Cycle Safety System pilot scheme announced with
trials commencing in 2017
l National campaign to highlight passenger safety when entering or alighting a bus
l 11%yearonyearreductioninpassengeraccidents
l 17%improvementonemployeeaccidentsduetofurther emphasis on personal safety on all sites
Investment in Expressway, PSO and Schools Fleetl 40 Expressway coaches entered service in early 2016
l All150Expresswayfleetvehiclesnowcarrythenewred Expressway livery
l Publicserviceobligationfleetincreasedby43vehiclesaspartofa50minvestmentprogrammebyNationalTransport Authority (NTA)
l 20busesaddedtoschoolfleetduringtheyear
Our People & Trainingl Ongoing garage apprentice training programme across
our network of 17 garages
l Bus ireann continued to invest in training for its managerial and clerical teams during the year
Communications, Corporate Social Responsibility & Sponsorshipl Leveraging social media for handling customer
contacts and queries
l Successful inaugural exhibition at the Ploughing Championships
l Contributed to over 50 CSR initiatives nationwide in 2016
l Launched campaign, Women of the Rising tocommemoratethe1916Rising
l Proud sponsor of Fleadh Cheoil na hireann
l OfficialcoachcarrierforFAIandIRFUnationalseniorsquad
l OfficialCoachproviderfortheDublinseniorfootballand hurling teams, and Galway hurling and camogie teams
Bus ireann Annual Report 2016Chairm
ans Statement
ReviewFinancial Statem
entsH
ighlights
5
Chairmans Statement
2016 has been a particularly challenging year for Bus ireann as reflected in the deteriorating financial performance of the business. Despite passenger journeys increasing by almost 5% the losses at the company increased by 3.5m to 9.5m.
2016 has been a particularly challenging year for Bus ireannasreflectedinthedeterioratingfinancialperformance of the business. Despite passenger journeys increasingbyalmost5%thelossesatthecompanyincreasedby3.5mto9.5m.
The level of losses incurred in recent years at Bus ireann cannot be sustained. Following a comprehensive review of all operating activities in 2016 and early 2017 a programme of organisation restructuring, work practice changes and a voluntary severance programme was agreed with company employees and their representatives. The primary objective of the plan istostabilisethefinancialperformanceofthecompany,while also ensuring the long term viability and success of the company. Long term viability will only be achieved byaddressingourcostbaseandinefficiencieswhilealso targeting passenger and revenue growth in an increasingly competitive marketplace.
Thesupportofourstaffisacriticalelementofachievinga sustainable business. The Boar
