Business as usual as GC Cabs considers offer
GOLD Coast Cabs says it will be business as usual with all employees to be offered likefor-like roles if the acquisition by A2B goes ahead.
Next month Gold Coast Cabs shareholders will consider a proposal from A2B Australia Ltd, formerly Cabcharge, which runs the 13CABS brand, to acquire its business, including its booking and dispatch service, for $2.5 million.
The sale of Gold Coast Cabs, which is owned by Regent Taxis Limited does not include the company’s property at Helensvale nor its 23 taxi licences.
Regent Taxis declared an after-tax loss of $772,207 for FY18, significantly worse than the $292,508 loss for the previous period. It had debt of $1.825 million.
Yesterday Gold Coast Cabs executive general manager Benjamin Lee said the board of Regent Taxis would recommend the sale to A2B goes ahead.
“Taxi services are traditionally anchored in local communities such as the Gold Coast and are built on a proud commitment to understanding and meeting the needs of local people,” he said.
“This acquisition seeks to expand on this commitment and enable Gold Coast Cabs to meet the challenges of a modern market while ensuring a level playing field for both operators and drivers.”
P2P Transport, which owns and operates half of the taxis under the Gold Coast Cabs brand, is currently taking Regent to court after it restricted access to its dispatch services.
The restriction was one factor cited by P2P for poor thirdquarter results, which saw it take a $2.8 million hit to its fleet services operation.
Shares fell further yesterday, plunging by 25 per cent in intraday trading to 22.5¢, before recovering ground to close down 11.6 per cent at 26.5¢.