Newsletter Jan 2010
Welcome to 2010 and your first Newsletter
Arriva Aylesbury Website www.arriva-shires.co.uk
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Steve Macdonald writes for you
Welcome to 2010!!!
I start by wishing each and everyone of you a VERY HAPPY NEW YEAR.
I hope you all enjoyed the festive season and Santa brought you everything you wished for.
I also wish to thank you all for all your efforts in what was a difficult financial year in 2009 and a difficult year weather wise too. When we had the snow back in February I don’t think any of us expected to see similar again so soon, like we did in December and I thank you all for your efforts, particularly Friday the 18th and Monday 21st, with a special mention to Dave Ward, Chris Mandley and Andrew Aldridge for their perseverance in very difficult conditions. This is by no way an exclusive list but returning back to depot at 3 in the morning deserves a mention in anyone’s books.
So what can we expect from 2010? I guess the simple answer is I don’t know. I think one thing is for sure and that once again it isn’t going to be an easy year, both for contract retention or gaining new work, for competition and for attracting new custom. However, we will try and rise to the challenges ahead and deal with them in a similar manner to 2009. We will continually monitor the workload and look at ways of attracting custom and, dare I say it saving money.
Of course 2010 does include one item we can be sure of and something that some if not most of you are aware, the CPC qualification.
By 2013, any person employed in a professional driving capacity must gain, pass and hold a CERTIFICATE OF PROFESSIONAL COMPETENCE (CPC). This is something we must all achieve.
CPC is a vocational qualification that measures you on how you do your job, that is it in a nutshell. An educational module will be set up consisting of several subjects, that are job related and some will be classroom based.
The idea is that anyone who holds a vocational licence is trained and behaves to a certain standard, which is only fair considering the value of your cargo and the trust a member of public puts in YOU.
More information will follow once the programme is rolled out, but we will do all we can to assist and answer any questions or concerns and this is already in motion, in the Skills for Life training module that Trevor is rolling out. This programme allows us to pass an opinion on your learning capabilities going forward into the CPC.
During 2010 we will continue our campaign to reduce the number of accidents and incidents that we are responsible for as a garage. The amount of money we spend on accidents and claims is unbelievable and is one very obvious place to target for 2010. I thank Stuart Robinson for his fantastic work during 2009 in campaigning the issues we face and I ask that you continue to support him in 2010 and forward suggestions and areas of concern to him, meanwhile we will continue to monitor and manage incidents.
Early in the year we hope to release final statistics for what was a terrible year for accidents and focus on areas of concern, especially the route 300 and the new(ish) Mercedes vehicles.
In the early part of 2010, we anticipate the results of the employee survey and it is our intention to share these with you and to hold an open evening to discuss the concerns, praise and findings of the survey. If you didn’t fill it in, please don’t attend – you had your chance to speak!!!!! However, we will introduce a suggestion box for concerns’, comments and ideas to improve the environment we all work in and any sensible suggestions will be actively looked into.
I sincerely hope that 2010 finally sees the country move clear of recession and we can then hopefully move forward as a garage and a business. I thank you for your efforts and your loyalty to Arriva in Aylesbury and hope you have a great 2010 both here in the workplace and personally.
Two final mentions before I sign off, firstly our congratulations to Heidi, who by the time this article is released should be a married lady and we wish her and husband, Mick well and hope the new year brings all the happiness it can. I also wish to thank Les for his efforts and pestering for this fantastic newsletter and the effort that goes in to putting it together, thanks.
Happy New Year everyone
Steve MacDonald
Depot news
Heidi and Mick
Congratulations on your wedding, hope you have years of happiness together
Arriva plc: pre-close trading statement
17 December 2009
- Trading in line with expectations
- Cost reduction programmes in all three divisions
- Continuing signs of recovery in UK Trains passenger revenue growth
- Earnings benefit from other items
Leading European transport services group Arriva plc reports that trading has continued in line with its expectations. Cost reduction initiatives have reduced the impact of both recessionary conditions and a year-on-year fuel cost increase of around £60 million, and will continue to benefit the group in future years. Whilst the economic environment remains challenging there is evidence of recovery in passenger revenue growth in our UK Trains division.
Trading
Revenue in the UK Bus division, adjusted for the same number of trading days, has increased by 4.4 per cent in the 11 months ended 30 November. Mileage growth in the contracted London business, which accounts for around a third of the division by revenue, was over two per cent in the same period. In the UK regional business, targeted reductions in commercial mileage of 3.4 per cent year-on-year have reduced the cost base whilst improving yield per mile and maintaining the viability of our network ahead of fuel cost reductions in 2010. Results for the division will reflect the second-half weighting of the 2009 fuel cost increase.
Revenue in the Mainland Europe division, expressed in euro, grew by 5.8 per cent in the 11 months ended 30 November. Excluding the effect of acquisitions made in 2008, revenue growth was 2.4 per cent. Cost saving programmes have been implemented throughout the division and will benefit the business next year. As previously reported, the commercial operations in Portugal have been particularly adversely affected by the recession, whilst trading conditions in the Netherlands bus market have been difficult.
Passenger revenue for CrossCountry is up by 2.1 per cent for the first 48 weeks of 2009. For the 13 weeks ended 12 December 2009 the increase has been 6.1 per cent, continuing the marked improvement in patronage since September. At Arriva Trains Wales, passenger revenue growth was 7.0 per cent for the same 48 week period, after allowing for timetable changes in December 2008. Both franchises have continued to provide excellent operational performance. Cost reduction measures already in place have contributed annualised savings of approximately £15 million. As reported previously, the revenue growth and cost savings in CrossCountry will be insufficient, this year, to offset the decline in franchise support payments.
Financial position
The group’s financial position remains solid, with continuing healthy cash generation and significant undrawn committed bank facilities. The group’s principal facility, a £615 million revolving credit facility, does not expire until August 2012 and has been enhanced by an additional €100 million facility with the same expiry date.
As previously anticipated, the existing fleet of 29 trains for Arriva’s Jutland rail contract has been recognised on the balance sheet in the second half of the year, with a book value of around £50 million and corresponding increase in debt. The trains continue to be financed by the existing provider. Most of the group’s debt is denominated in euro or in currencies linked to the euro. If the recent strengthening of the euro persists until the end of the year, the sterling equivalent of that debt will be higher than the half year when the exchange rate was 85 pence to the euro.
Other items
In addition to earnings derived from underlying trading activities, it is anticipated that there will be a net earnings benefit from the following items.
There has been an agreed change in the benefit structure of the Arriva Passenger Services Pension Plan, the largest of the group’s defined benefit pension schemes. Following discussions and subsequent agreement with the trade union and the Trustee, and a consultation process with the active members of the scheme, a proposal to reduce future benefit accrual, reducing costs to both members and to the company, was implemented with effect from 1 December. This change will significantly moderate the increase in retirement benefit obligations in the group balance sheet and is expected to give rise to a corresponding credit to the income statement (before taxation) of around £45 million. It will also mitigate against future pension cost increases that would otherwise arise from the increase in such obligations.
During the year the group has resolved a number of historical tax matters with tax authorities. These include a recent settlement which we expect to give rise to a saving of approximately £70 million. The timing of the recognition of this amount in the income statement is yet to be determined.
An impairment charge of approximately £30 million is anticipated. In light of the factors affecting the Portuguese bus market and the likely continued abstraction of revenue to the recently extended light-rail system south of Lisbon, the Portuguese operation has been de-scaled to a level commensurate with the changed environment.
Outlook
Although 2009 has been marked by uncertainty over the general macroeconomic outlook and impact of challenging market conditions, some of which continues, the trading performance of the group, tight cost control, and the circa £30 million reversal of the 2009 peak fuel cost increases, all combine to give the Board greater confidence in a positive medium-term outlook. The competitive landscape continues to provide opportunities for further growth, with an encouraging pipeline of tenders in the mainland European market.
The recent upturn in CrossCountry passenger revenue growth represents a substantial improvement from the levels experienced in the first half of 2009, but still falls well short of the level required to compensate for declining franchise support payments. With the availability to CrossCountry of contractual protection from shortfalls in projected passenger revenue from November 2011, and the continuing good financial performance of Arriva Trains Wales, we have clear visibility of significant anticipated recovery in the financial performance of the UK Trains division from 2012 onwards.
The group is scheduled to release preliminary results for the year to 31 December 2009 on Wednesday 3 March 2010.
* The group’s forward fuel fixing for 2010 is substantially complete, with 17.1 per cent of the anticipated 510 million litre annual fuel requirement protected by indexation arrangements, and 76.6 per cent forward purchased at an average price of 35.9 pence per litre, excluding fuel taxation and delivery. The position for 2011 is 37.3 per cent fixed at an average price of 31.4 pence per litre. As reported previously, 75 per cent of the approximate 100 million litre annual fuel requirement for CrossCountry remains fixed at 26.5 pence per litre, until 2016.
If you like photography why not enter this competition
Photo competition
Our photo competition is open to Arriva employees across all our businesses. If you’re an employee and you’d like details of the competition, e-mail photos@arriva.co.uk
The next deadline for entries is 25 January 2010.
Arriva Photo of the Year 2009
Picture taken by Mark Scott at Wingfield, Derbyshire. Mark, who lives in Risley, works for CrossCountry
October 2009 winners
1. Mark Scott, CrossCountry (Derby), UK
2. Max Warebring, Arriva Scandinavia, (Stockholm), Sweden
3. Simon Kent, CrossCountry (Derby), UK
July 2009 winners
1. Simon Kent, CrossCountry (Derby),
UK
2. Gordon White, CrossCountry (Bournemouth), UK
3. Chris Hopkins, CrossCountry (Plymouth), UK
April 2009 winners
1. Sebastian Schneider, Metronom, Germany
2. Simon Kent, CrossCountry, UK
3. Salvatore Tigano, SAF, Italy
January 2009 winners
1. Mark Scott, CrossCountry, UK
2. Marco António Lindo, Arriva Portugal
3. Simon Kent, CrossCountry, UK
Arriva Photo of the Year 2008
Picture at Tyne Yard by David Brereton of CrossCountry Trains who lives in North Shields.
October 2008 winners
1. Andrew Milner, CrossCountry Trains, UK
2. Simon Kent, CrossCountry Trains, UK
3. Paul Peschke, Arriva Deutschland, Germany
October 2008 runners up
1. Francisco Plaza, Esfera Bus, Spain
July 2008 winners
1. Dave Brereton, CrossCountry Trains, UK
2. Geraint Morgan, Arriva Trains Wales, UK
3. Mark Scott, CrossCountry Trains, UK
July 2008 runners up
1. Martin Ivan, Autoservizi FVG SpA – SAF, Italy
2. Chris Hopkins, CrossCountry Trains, UK
3. Tiago Ribeiro,
Arriva plc, Portugal
April 2008 winners
1. Mark Scott, CrossCountry Trains, UK
2. Fabiano Moscatelli, SAF, Italy
3. Hendrik Keizer, Arriva Trains, the Netherlands
January 2008 winners
1. David Sharp, Arriva North-East, UK
2. Riccardo Lavia, S.A.F. Autoservizi F.V.G. SA, Italy
3. Bruno Filipe Calixto do Chao, TST SA, Portugal
Arriva Photo of the Year 2007
Picture taken at Dilston Bridge, Hexham by Stuart Lowerson, of Arriva North East, Hexham, Northumberland, UK read more
October 2007 winners
1. Stuart Lowerson, Hexham, Arriva North East, UK
2. Walter Di Paride, SAF, Italy
3. Tina Hughes, Machynlleth, Arriva Trains Wales, UK
October 2007 runners up
1. Luca Durì, SAF, Italy
2. David Sharp, Arriva North East
3. Riccardo Lavia, Italy
4. Thomas Lont, Netherlands
July 2007 winners
1. Stuart Lowerson, Hexham, Arriva North East, UK
2. Alastair Speight, Hexham, Arriva North East, UK
3. Jim Harrison, Wellington, Arriva Midlands, UK
July 2007 runners up
1. Ray Fawcett, Blyth, Arriva North East, UK
2. Alastair Speight, Hexham, Arriva North East, UK
3. Tina Hughes, Machynlleth, Arriva Trains Wales, UK
4. Tina Hughes, Machynlleth, Arriva Trains Wales, UK
April 2007 winners
1. Osvaldo Donghi, SAB, Italy
2. Ian Dalgliesh, London, UK
3. Luca Durì, SAF, Italy
April 2007 runners-up
1. Alastair Speight, Hexham, UK
2. Gwilym Lush, Wales, UK
3. Pietro Capelli, Italy
4. Fabiano Moscatelli, Italy
January 2007 winners
1. Ivo Borri, Trieste Trasporti, Italy
2. Michael Goodyear, Yorkshire, UK
3. Steve Mowbray, Blyth, UK
October 2006 winners
1. David Sharp, planning manager, Arriva North East for his photo of Bamburgh Castle in Northumberland, UK
2. Paulo Galluccio of SAF in the Udine region of Italy for capturing an image of a young customer reading a timetable
3. Ray Fawcett of Arriva North East’s Blyth depot in the UK, for the imagination he showed in this photo in Newcastle, UK
High Wycombe bus station after the recent Snow fall
Picture by Gavin Francis
The bus station operating area was somewhat snowbound. By 1043 when this picture was taken more services were running
Well thats all for now
Have a very safe New year celebrations
See you all in 2010