During the year, we acquired SS&L, which operates a fleet of 3,100 vehicles in eight states, and Forsythe, which runs more than 250 vehicles for eight transit authorities, as well as 90 school buses for two school districts. The acquisition of SS&L strengthens our position in the geographic areas with the greatest growth in the student population. On the back of recent acquisitions, we integrated the back office functions of acquired businesses into the NEC head office, a process which will save more than £2m per annum.

Student transportation

The acquisition of SS&L consolidated our position as the third-largest provider of student transportation services in the USA with operations in 19 states. Following a reorganisation into regions, the division is improving further its contract-tendering process. We added new contracts in California, Illinois, Michigan, Missouri and Pennsylvania. During the year, we won a number of significant awards for the quality of our services.

With the growth of the business, there is added focus on employee training, asset utilisation and driver recruitment programmes. Standardisation of best practices across these businesses is being implemented. We further strengthened the management team with the appointment of John Elliott who, with more than 25 years’ experience of the student transportation market, joined as Chief Operating Officer of the transportation division.

Public transit

We continued to win contracts and maintain our reputation for quality service and growth despite a background of increased fuel costs, labour shortages and increased health and liability insurance.

We are the second-largest public transit provider in the USA. We won new, or expanded existing, paratransit contracts in Cobb County, Dallas, Denver, San Francisco and San Jose. We achieved extensions to fixed-route contracts in the Chicago suburbs, East Bay, California, Las Vegas and Napa Valley.

Airport management

Control of Stewart International Airport was transferred to the Group on 1 April 2000. Since then, we have focused on improving its management and operational structure. In December, Charles Seliga, formally General Manager of New York’s JFK Airport, was appointed Managing Director.

The future

There continue to be excellent opportunities for further growth in the sectors in which we operate: only 30% of the student transportation sector and 8% of the public transit sector is privatised. Recent integration of operations has positioned us to take better advantage of growth opportunities which may exist.

Frequency

Following the award of a public transit contract in Las Vegas, we provide valuable urban services.