No reasons given after cardiff bus £1.9m loss
CARDIFF Bus lost £1.9m last year but has refused to explain publicly what caused it.
The council-owned firm has previously made profits after tax of £229,000 in 2016/17 and £293,000 in 2015/16.
A Conservative councillor accused the city bus operator of “haemorrhaging money”.
Cardiff Bus has not yet filed accounts for the year ended March 31, 2018, to Companies House.
Yet the city council’s latest financial statement shows that the bus operator’s revenue fell from £32m in 2016/17 to £30.5m in 2017/18.
At the same time, its costs rose from £31.6m to £32.8m, leaving it with a £1.913m loss after tax during the year.
In its previous accounts for 2016/17, the firm warned that the biggest risks to its profitability were rising fuel prices and potential cuts to Welsh Government bus subsidies.
Councillor Tim Davies called for more transparency over Cardiff Bus’ finances as he told a Cardiff full council meeting on Thursday that members were being kept informed “on a needto-know basis”.
Speaking after the meeting, the Conservative councillor said: “Taxpayers have to pick up the tab for all its liabilities.
“Unless major improvements with Cardiff Bus are made in the very near future to stop the haemorrhaging of money, major decisions will have to be made concerning the company.”
Cardiff Bus would not comment on the financial losses.
In 2017/18, Cardiff council made payments of £8.773m to Cardiff Bus, which mostly related to concessionary fares payments.
That year the council received an income of £62,000 from Cardiff Bus, down from £93,000 in 2016/17.
But Cardiff Bus has not paid any dividends to the council since a £250,000 payment in 2015/16.