Optare is one of the most respected names in the UK bus industry. Our parent, Ashok Leyland, part of the Hinduja Group, is ranked within the top five global bus manufacturers. We design, manufacture and sell single deck and double deck buses, and offer a comprehensive after sales service.

Building on a history of innovation, we have developed a range of low-carbon buses using enhanced diesel technology, alternative fuel options and hybrid systems, and even full electric drivelines which are available across our entire product range. And with reduced weight designs and optimised drive systems we set the benchmark for fuel economy and CO2 reduction.

Our buses operate not only in the UK but in Continental Europe, North America and further afield. We also supply complete vehicles, CKD or SKD kits, technology transfer and licensing agreements worldwide.

Optare’s integrated design is unique and features an easily demountable power pack. This allows our buses to be future proofed, giving operators peace of mind since, with continued rapid advances in low carbon technology, Optare buses can be upgraded to whatever is the best system over the 10 to 15 year life of the bus.



ROUTE ONE MAGAZINE ARTICLE - FEBRUARY 2012 ( including download link )

THE GAME CHANGER

By Mel Holley

Route One Magazine - February 2012


A new factory, a new finance arrangement and new products mean that as Optare heads toward the end of its three-year turnaround plan and a return to profit there's a renewed new mood of confidence for the UK bus builder.

Consistency has been the key feature of Optare CEO Jim Sumner’s three year turnaround plan.The business has been through the mill in many ways, but this is water under the bridge as with a new single-site assembly plant, new financing arrangements and new products on the way, there’s much to smile about.And trying to achieve all this in the midst of the biggest downturn in the UK new bus market of recent years is no mean feat. Yet, Optare held its own in the declining market, with 269 vehicles registered in 2011, just 10 down on 2010 (routeone, Big Story, 19 January). But this is only part of the picture and in 2012, the new Sherburn in Elmet assembly plant, just off the A1 near Pontefract, is expected to produce 800-900 buses, including 190 completely knocked-down kits (CKD) of Solo SRs for South Africa.

This has only been made possible by the deal that, earlier this month, saw Indian-based Ashok Leyland take a 75% controlling stake in Optare,having taken an initial 26% stake around 12 months previously. And, this financial backing has other key implications - all positive. Optare previously banked with Lloyds TSB/Bank of Scotland, and the taxpayer owned bank is notoriously riskaverse.The Ashok deal has seen Optare pay off its remaining debts, close its Lloyds account and switch to Ashok’s bankers,HSBC.

So, having gone from a position where Optare owed £9.5m, down to £1.2m last year, it now has new banking arrangements and credit lines, opening more opportunities - such as immediate access to Ashok’s purchasing arrangements with suppliers such as Cummins.The final part of the jigsaw is completion of the sale of the remainder of the Rotherham site (clearing the £1.2m debt) with part of the site leased back to continue the Aftercare business.“Without Ashok’s backing and the re-financing deal, we couldn’t have won the South Africa order,”adds Mr Sumner. Not only are bidders’ financial positions examined in careful detail - to establish that they can deliver the order and provide the ongoing support - the export market is not the place for minnows. With Ashok being the fifth-biggest bus builder in the world, it’s no minnow.There are other considerations too, for example, the South Africa order will require £3m-£4m of
working capital, to cover goods in transit etc. Again, Ashok’s backing is vital in this arena.

Further proof of the seriousness of the export drive, was the unveiling last week of an Ashok Leyland-badged Solo at the Delhi Auto show (see news pages) where it received very strong interest. It also returned the famous fluid-flywheel ‘L’ logo to the front of a British-built bus.This use of Optare’s intellectual property is another aspect of the leveraging that is now possible.And, more products will follow. Last week’s announcement of a new Optare Bonito low-floor minibus will fill a vital gap in the range. Meanwhile, the doubledecker project proceeds, with more accumulation miles and testing of the prototype, even though it has not yet been decided to put it into production.The outcome of the London Mayoral elections in May, and what Transport for London’s future double-decker buying policy will be, is one aspect that is being looked at. However, again Ashok is also interested in the vehicle for its domestic market.

It’s still a case of ‘wait and see’, “the product is up our sleeve,” says Mr Sumner, but while the time may not be right yet, neither is the project dead. The Versa is also of interest to the Indian market, says Mr Sumner.The rationalisation of the Solo range, to just the SR model, was inevitable. “In a recession you need to keep as many products available as possible. With the move to the new factory, and greater integration with the Versa range, the time had come to trim the range,” says Mr Sumner. “Also, the SR is the only model that will sell to the export markets.” This autumn’s Euro Bus Expo will be a key show for Optare; there will be news on products - although what exactly isn’t being revealed. The only clues are that the Versa is involved with a facelift, and that Optare is planning to enter the 10.7m market - traditionally ‘Dart’ territory - with a “blockbuster product,” says Mr Sumner.There are four key elements to
Optare’s three-year turnaround strategy, of which six months remain. Firstly, to make the factory move, secondly to re-bank, thirdly to return to profit, and fourthly business development by growing the order book and winning exports.Having started with three sites building buses (Leeds, Blackburn and Rotherham) the transfer to a single assembly plant delivers all kinds of efficiencies. To call it’s a factory move is not entirely accurate, as little of the old factories, save for some small plant and tools, have actually moved. The new factory employs 290 staff, of which 200 are on the manufacturing side, and this total will rise to around 350.

Optare retains a small contingent of staff at Blackburn, although these are about to move, along with its aftercare and service centres at Rotherham and Thurrock, bringing the total workforce to around 500. The major investment is £750,000 in two low-bake spray booths/ovens, while other new equipment includes vehicle lifts, mezzanine flooring and cranes. With everything in a single production hall, the benefits of starting with a new, empty building, are clear. Not only do the offices house all the functions together, so people can now talk to each other faceto- face, rather than being split across several sites, the vast, modern, production hall is designed to allow for any future layout changes to be made easily. Outside, is an adjacent test track used by brake component manufacturer Mintex, which Optare is able to use. The production hall is set up with two u-shaped production lines,with about 50 vehicles in progress when we visited last week. The bus frames are now built by the WEC Group Ltd. This management-owned fabrication and engineering specialist previously based in Darwen, Lancashire, supplied Optare with kits of components to manufacture structures over the last two years.

With the move and a new contract with Optare, WEC commissioned its own new factory adjacent to Optare’s Sherburn bus assembly operation. It now delivers complete bus structures, ready for component fitting. Optare has also installed new IT systems and introduced Gemba - a Japanese quality and improvement process that promotes lean manufacturing and continuous improvement ideas. Commonly used in the car industry, along with Kaizen (change for the better), it means that productivity and quality will continue to improve. The result is that, currently, Sherburn complete three buses, per day, on a single shift (i.e. 15 per week). This gives the factory a capacity of 750 buses on a single shift, or 1,200-1,500 on two shifts. Currently, slightly more buses are in progress than usual as there a large number of hybrids - mainly the Greater Manchester order - all of which will be delivered by the 31 March deadline.

This brings another aspect to Optare’s development, as this contract is repair-and maintain, which gives Optare the opportunity to experience first-hand the real-life challenges of operations, and feed improvements back into product development. Mr Sumner praises the approach of Ashok: “I’ve worked for Anglo-American companies which have a command-and control type of management approach,” says Mr Sumner, “but Ashok is empowering us and enabling us to develop. It’s a different culture, and one that’s very refreshing. And, if you want an example of what that can produce you only need to look at another Indian firm, Tata, which owns Jaguar among others.” Other things in Optare’s sights are its renewed focus on looking at whole-life vehicle costs - especially where fuel consumption is concerned - and the possibility - again thanks to Ashok’s backing - to enter the direct finance and leasing market. Together, the factory move, rebanking and Ahsok’s’ involvement, are the biggest positive things to ever happen to Optare.

Concludes Mr Sumner: “It’s a game changer, by anybody’s standards.”

----------------------

Route-One Comment:


Already a number of operators have had the chance to see the new production hall at Sherburn for themselves, with more having the opportunity in the coming weeks.There are clear efficiencies being gained from the new site, which means that Optare will be able to remain competitive on price. Mr Sumner is direct: "The business will be in profit for the financial year to the end of 2012", by when the bold three-year turnaround period will have ended.

Optare has long won its market share thanks to innovative products meeting specific market needs. But, now part of a major global player, this Ashok Leyland Group company, has set its sights on new markets that wetre previously not within its reach.Make no mistake, this is a positive watershed moment,which means that Optare will be ideally positioned for growth, just as the economy starts to come round.

http://www.mediafire.com/?0o11q2utcaq05aj

Exporter of the Month - Optare

http://www.insidermedia.com/productsandservices/archive/ybi/february_2012/exporter_of_the_month_optare/index.html

It’s quite simple really,” explains Jim Sumner, “you just follow the money.” The bus manufacturer, based in Sherburn, has just secured a large order in South Africa, won after the chief executive of Optare decided to target the country because of the infrastructure developments surrounding the football World Cup.

Exporter of the month - OptareThe deal for 190 vehicles heralds a new chapter in the company’s history and is just an appetiser for many other contracts in the pipeline across the globe. It’s a very different story to three years ago when Optare was battling to avoid bankruptcy.

Established in Leeds as part of the British Leyland empire, Optare was formed in 1985 when the factory workers funded a management buyout with their redundancy payouts as Leyland was broken up. In 2008, the business was acquired by Roy Stanley and was floated on AIM. However, the effects of the recession and a new and inexperienced management team meant the business began to struggle and contract.

With customers looking elsewhere as they feared for the future of Optare, Sumner was recruited in early 2009 and immediately set about a three-year turnaround strategy.

“When I joined, Optare was very close to collapse. It was a good company, but it desperately needed modernising. I realised what I was getting into and I enjoy a challenge, but the real motivation was not wanting to see another quality British manufacturer going to the wall,” he says.

Sumner set out three objectives that would be crucial to turning the business around during a recession. He decided the business needed one modern efficient site, a new strategic partner with a global presence and to be repositioned as a low-carbon manufacturer and exporter.

In late 2009 Sumner sought out new investors to help him achieve his goals. He gained the backing of Ashok Leyland, a group owned by Insider’s Rich List regulars the Hinduja brothers, who took a 26 per cent stake and provided the capital needed to cut historic debts and invest in the business.

“The market was very tough during 2010 and it was challenging for us,” says Sumner. “However, we carried on doing what we believed in and we continued investing in the business and our products.

“We just didn’t have the capacity we needed to be able to cope with big orders at the old site, which meant we couldn’t chase fleet orders. We desperately needed to consolidate on one site and increase our capacity.”

With the support of Ashok Leyland, Sumner secured a new site in Sherburn-in- Elmet. He says the move enabled the business to “jump light years ahead” in terms of manufacturing, reducing costs while also dramatically improving productivity. Such has been the success of the move that Ashok Leyland has now taken a 75 per cent stake in the business and has placed it at the centre of its global business strategy.

Sumner says: “When I joined we had a £7m order book and that was dropping all the time. Today we have a £60m order book and that is increasing every day. All of our objectives will be achieved by the time I reach my third anniversary in June and we will make a profit this year.”

Sumner is now working closely with the Ashok Leyland group to introduce Optare buses to markets worldwide and, in addition to the successes in South Africa, the company is already making an impression in India, Israel and the Middle East.

Exports will account for a third of Optare’s turnover this year, but international trade is the most important factor in developing the business over the coming years. “The UK is a modest market and the only way to ensure our future is to be a substantial exporter – there just isn’t a big enough slice of the pie to sustain us at home,” says Sumner.

One of the biggest challenges Optare faces when it comes to exports is the product itself. The logistics of shipping such a large item can make it costly and inefficient, so Optare is using the Ashok Leyland group’s network of workers and facilities to assemble the buses in the destination country.

In the case of South Africa, most of the parts are shipped out and then assembled in the country, but in India the bus frames are shipped out and locally made using Ashok Leyland engines to make the buses more cost effective.

Sticking with the mantra of “follow the money”, Sumner says the group is looking to acquire a suitable manufacturer in Brazil at the moment, which can be used to produce Optare’s products in the country before it hosts the World Cup and the Olympics in the coming years.

“We’ll use the contacts of local companies to break into the market and then use them to sell and produce the Optare products,” he says. “It’s proved successful in other countries and it’s a model we’ll replicate as we export the brand.”

Optare is also targeting Europe, despite austerity measures sweeping across the continent and money being in short supply. However, Sumner has a back-up mantra: “Follow where the cost savings need to be made.”

He adds: “There’s not a lot of money in Europe at the moment as most of it is in deposit accounts in Asia. However, a lot of countries are looking at how they can save money and that means smaller, more efficient buses.

“There’s no real competition for us on the Continent and the austerity measures are creating a lot of interest in our products. We are seeing record levels of interest in exports.”

Optare has buses on trial in Holland, Sweden and Malta at the moment and is receiving a lot of positive feedback. Despite the different requirements in each market, Optare’s modular approach to buses means each can be quickly and cheaply modified to suit.

Looking to the future, Sumner believes a commitment to research, development and green technologies will guarantee success for Optare on the global stage.

“We are bringing new technologies to the market and we have something different to offer. That means we aren’t going in to a country and shouting ‘me too’. You need to be able to offer something different because you will not be able to compete on price alone,” he says.

“Exports will not only be crucial for the future of our business, but for the whole country. If the government wants to rebalance the economy, then we must move more towards manufacturing but also make sure we are exporting and making the most of the overseas markets.”

Found some further contract wins for optare, i spoke to the company last week
and asked the obvious question why not release news in RNS ? i was told they
prefer to issue updates during every business quarter. So we should get a bumper
update soon not only confirming the current £60m order book but also additional
contracts won in the last month or so. Things hotting up here ?

http://menmedia.co.uk/manchestereveningnews/news/business/s/1485952_stagecoach-to-spend-60m-on-greener-vehicles?all_comments=1

http://www.epsomcoaches.com/index.php/optare-solo-sr-for-route-470

http://focustransport2011.blogspot.co.uk/2012/03/blazefield-orders-for-2012.html

Maybe a good week ahead for optare !

Nice to see a thread started for an interesting company. Been invested here for years and things are now looking up. Optare expect to make a profit this year with backing from Ashok Leyland. Breaking into new overseas markets with quality buses. The only downside I can see is the huge amount of shares now in circulation ...

TWO NEWS ITEMS FOR OPTARE ON FRIDAY - Here is the first


£101 million bus boost for passengers - More low carbon buses and better partnerships to increase growth and cut emissions.

http://www.dft.gov.uk/news/press-releases/dft-press-20120323a/

Commuters and bus passengers across England will see more eco-friendly buses on the roads, congestion reduced and services upgraded, thanks to a new £101 million package of improvements approved by Local Transport Minister Norman Baker.

Today’s announcement will see:

£31 million spent on 439 low-carbon buses, part of the Government’s Green Bus Fund which aims to bring down fuel emission and air pollution levels and encourage bus operators and local councils to make the switch to hybrid-electric, fully electric or gas buses.
Winning local authorities across England will also receive a share of £70 million under the Better Bus Area (BBA) fund to boost growth, improve partnerships with bus companies and increase bus passenger numbers.

Local Transport Minister Norman Baker said:

“This funding means a better deal for passengers and encourages more people to travel by bus. It updates and improves services and infrastructure, reduces congestion, gives quieter journeys and with the introduction of new carbon friendly buses, reduces fuel costs and CO2 emissions, creating a greener network.”

The £70 million will be shared between 24 local authorities who have impressed the Department with their bid for funding. They will benefit from up to £5 million each. This will support a range of targeted improvements including:

* smarter multi-operator tickets
* traffic lights that can help buses beat the queue
* real time information; and
* improvements to shelters and stops

Following a two month bidding process the department has also provided funding for 439 new eco-friendly buses for 2012/2013. Passengers will see 128 single-decked and 311 double-decker buses in service from spring 2013, saving over 9,000 tonnes of carbon dioxide (CO2) emissions per year. The 26 bus operators including Stagecoach, Arriva and First are receiving more than £22 million, with more than £8 million split between five local authorities.

Five bus manufacturers will benefit from orders for their eco-friendly hybrid, electric and gas buses. They comprise: Volvo, Wrightbus, OPTARE, MAN and Alexander Dennis Limited, all of which are based in, or partly in, the UK.

By switching to low-carbon buses, the winners will also be eligible to claim additional government subsidy through the Bus Service Operators Grant to run these buses. Bus operators and local authorities will be given six pence per kilometre to support them with operational costs.

Notes to Editors

For further information, to organise an interview with Local Transport Minister Norman Baker or to request a regional fact sheet with a breakdown of all the winners, please email melanie.purkis@dft.gsi.gov.uk or call 0207 944 4342.

1. Better Bus Area Fund: For further information on the winners, the projects and funding breakdown go to http://www.dft.gov.uk/publications/better-bus-areas-fund.

2. The Department has made available an additional £20 million on top of £50 million to improve local bus services under the Better Bus Area fund.

3. All bids were assessed on how well they promoted growth, reduced carbon and encouraged partnerships between local authorities and bus operators. The projects were also assessed for deliverability, financial sustainability and value for money.

4. Green Bus Fund: For further information on the winners and projects go to http://www.dft.gov.uk/publications/green-bus-fund-round-3/

5. The local councils who will receive funding include: Nottingham City, Transport for London and Greater Manchester, Milton Keynes and Nexus.

6. Round three was launched on the 19 December 2011. The closing date for bids was the 10 February 2012. Scotland is holding a separate £2 million competition.

7. The budget for Round Three of the Fund was increased from £20 million to £31 million with the additional funding coming from savings and under spend found elsewhere in Government.

8. This is the third round of the Government’s Green Bus Fund and operators were allowed to bid for up to 80 per cent of the cost difference between the low-carbon bus and its diesel equivalent. Round one was launched in 2009 and paid up to 100 per cent of the difference, with round two paying up to 90 per cent. The number of bids received has increased each time with councils and operators realising the long-term financial, practical and environmental benefits of low-carbon buses. For further details on round one and two go to http://www.dft.gov.uk/topics/public-transport/buses/green-bus-fund/

9. By switching to low-carbon buses, the winners will also be eligible to claim additional government subsidy through the Bus Services Operation Grant to run these buses. Bus operators and local authorities will be given six pence per kilometre to support them with energy and fuel costs. These payments are set to continue in 2013.

10. A diesel hybrid electric bus runs on a combination of diesel and a battery. Gas buses funded through the Green Bus Fund will run on 100% biomethane.

11. The total grant amount offered to operators and councils is £30,931,160. For grant offered broken down by operator or local authority go to http://www.dft.gov.uk/publications/green-bus-fund-round-3/

12. Each year, every low-carbon bus in London saves around 26 tonnes of CO2 compared with its diesel equivalent, with buses outside London estimated to save around 22 tonnes.

Second piece of news i found on friday, a further £2.2m contract win announced in
latest issue of route one magazine.

http://www.route-one.net/e-books/currentIssue/index.html#/32/

OPTARE PLC - Advancing Under Ashok Leyland

Since Ashok took a controlling interest in Optare during 2011, the company has undergone a total facelift and restructuring and now looks poised to explore the global export market, alongside increasing market share in the Uk. Historically optare has always had a decent presence in the sector, but since the Ashok Leyland takeover the company are moving from three premises into one state of the art modern plant at Sherburn in Elmet ( Nr Leeds ).

The move from three premises into one has large cost saving implications alongside a greatly increased manufacturing capability of some four times higher its previous levels.

In february 2012 the company was heralded " exporter of the month " after securing a large export contract in South Africa, and also have a number of models on test in countries such as Malta , Holland , and Sweden . The company are also expected to gain decent contract awards under the UK governments Green Bus Fund that has recently been confirmed by the Department of Transport.

The company are also eyeing a great opportunity in the small bus market, where they have a brand new model up their sleeve that is already creating quite a "buzz" in the industry. Optare also have a number of leading edge Hybrid and Green buses that could not only be popular in the UK, but also has potential to take "market share" in many countries where emmisions legislation is favourable for new generation low emission buses at an affordable cost.

Backing of a Giant

Ashok Leyland is part of the Hinduja Group of companies and have a global footprint.

http://www.ashokleyland.com/



Hinduja Group

The Hinduja Group is a multi-billion dollar, transnational conglomerate. The Group was founded by Shri P.D. Hinduja in 1914 whose credo was "My duty is to work so that I can give."

The Group's activities span across three core areas: Investment Banking, International Trading and Global Investments. It also supports charitable and philanthropic activities across the world through the Hinduja Foundation. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure Project Development, Chemicals & Agri business, Energy, Real Estate, Trading and Healthcare. With operations across 40 countries, the Group employs over 40,000 people worldwide.

http://www.hindujagroup.com/

http://www.stockopedia.co.uk/content/optare-plc-advancing-under-ashok-leyland-64996/

Direct Link to stockopedia article

http://www.stockopedia.co.uk/content/optare-plc-advancing-under-ashok-leyland-64996/

Just had a small dabble here.

Going well!

Bumpy ride, but what would you expect from a bus?! To be fair buses are a lot more comfortable these days and I am comfortable holding these shares. A good bit of info from Glen. I am adding this little bit because I think it highlights the possible value of Optare:-

Alexander Dennis decided last December not to pursue a possible takeover of Optare because " Ashok Leyland said it had "no intention of selling its stake in Optare to anyone at any price".

If you squint you can see a seminal golden cross :-)

I've gone cross-eyed!

http://www.hindujagroup.com/

Breaking news - March production is up 147%

http://issuu.com/statsonline/docs/march2012-data

SMTT links for march stats.

Online ( XLS )

http://www.smmt.co.uk/2012/04/encouraging-first-quarter-for-bus-and-coach-market-with-registrations-up-56-5/

View in PDF here

http://issuu.com/statsonline/docs/march2012-data

Looking good



http://www.noodls.com/viewNoodl/13934033/optare-plc/optare-supplies-39-hybrid-school-buses-to-tfgm

Nice to see the BBC news today showing Optare's electric bus gliding along smoothly in Coventry. Pity the same can't be said of the sp!

As long as it wasn't on the back of a low loader! :-)

:o)
No, it was looking good, splashing through the rain! 30 minutes re-charge time and it saves £120 per bus per day in fuel. Apparently! It does have 56 batteries costing about £1,000 each but it is expected that they will last up to 5 years. That, however, is not known!

http://www.bbc.co.uk/news/business-18409830

should do well in Bombay then!

Indeed, plenty of stop/starting to keep that flywheel working!

Woosh, whir, hmmmm, or whatever noise an electric bus makes!

With results due within the next two weeks it was interesting to see a late buy of 1m shares after hours ... first late buy I have ever seen for Optare in my 4 years of holding. Hope someone knows something positive is coming our way.

Optare plays part in Ashok Leyland’s bus export drive

Ashok Leyland, parent company of Britain’s Optare bus making business, is targeting five country clusters — West Asia, Africa, Russia, Asean and Latin America — to either export to or start local operations.

A nice ride up to 1p and beyond maybe?!

It appears that besides the Coventry electric buses now in service there are also Optare electric buses now in service in Dorset, running from Poundbury to Dorchester. Having been on trial they clearly proved to be a success and are now up and running. The potential for councils up and down the country to take up this clean, quiet and environmentally friendly form of transport is immense.

The chart is starting to look interesting.

Final Results

Operational Highlights

· Major operational and business restructuring complete, with closure of the Leeds and Blackburn facilities along with the sale of the Rotherham site.

· Move successfully completed to new factory in Sherburn in Elmet.

· Over 150 new Hybrid and Electric buses now in operation in UK and export markets.

· Europe's first 11.1m Electric bus launched.

· Major export success achieved in South Africa with initial £18m order.

· Ashok Leyland increased its stake in Optare to 75.1% in January 2012 and committed to maintaining its AIM market listing.

· Board strengthened by the appointment of four new Non-executives including Jorma Halonen, former Chairman of Volvo Bus corporation.

Financial Highlights

· Revenue for the 15 month period £72m.

· Capital investment of £2.2m made in new Factory.

· Direct labour was 13.6% of revenue over the 15 month period (14.3% 2010), this compares with the last three months run-rate at the new Sherburn facility of 9.4%, demonstrating the significant efficiency improvements of the new single site.

· Administration costs pre-exceptional were 14.4% of revenue over the 15 month period (14.7% 2010). This compares with the last 3 months of 9.0% with the full impact of the Blackburn closure yet to be fully reflected.

· EBITDA losses for the 15 month period were £6.8m pre-exceptional. Management estimate this includes around £2.9m of costs that could have been avoided had it not been for needing to stagger factory closures and outsourcing activities, undertake major site clearance work and retain skills during production transfers.

· Exceptional costs for restructuring, redundancies, relocation and the factory moves totalled £4.6m.

· Loss per share reduced from 2.1p per share to 1.4p per share

· Remaining term debt with Lloyds Bank of Scotland paid down and all fixed and floating charges released.

· New working capital facility agreed with HSBC and supported by Ashok.

· Tax losses at current corporation tax rates equivalent to approximately £9.3m will be useable when the Group achieves profitability.

· Order book stood at £45.7m at year end 31st March 2012.

Moving up on good news. Optare broke back into EBITDA profit during the summer, chief executive Jim Sumner has revealed. Also they will be launching a new model Optare Bonito alongside an entirely new model which is still a closely guarded secret. It's about time we had some news!

Just realised that the Bonito has already been launched. Doh!

So not that secret then! :-)

There is, allegedly, another "secret" model skinny! Shhh! Don't tell anyone! :o)

Lol!

kim yes there are details on this in various reports :-)

Euro Bus 2012

The best that Europe can offer…

With passengers increasingly demanding greater levels of comfort, connectivity and accessibility in the way that they travel, along with their greater understanding of the impact of greenhouse gases on the environment, bus and coach development continues to move forward at a rapid pace.

Buses, coaches, minis and midis, from 7 to 15 metres, super low floor to double deck, or full executive luxury to stage carriage and community services. At Euro Bus Expo 2012 you can touch, feel and see a huge array of passenger carrying vehicles whatever it is you want to experience, brought to you by many of the UK and Europe’s leading chassis, body and complete vehicle manufacturers.

16 buses registered for optare in UK

Jim Sumner was talking on Breakfast TV this morning, Didn't see it myself but by all accounts prospects look very good. He is off to Africa on a business trip.

Kim - it sounded positive - but, as ever - sales are what counts.

True! How many sales have been made in Africa I wonder, any idea?

No - M.T.Glass/Juzzle likes doing most of the research on this one :-)

Ah, yes! I will await some well researched figures then! ;o)

Optare looking to an electric future for buses.

First Optare Solo SR to enter service in Cape Town

You wait for ages for a Solo SR to come along and 190 appear!

“Following delivery of a demonstration Solo SR in February 2011, Busmark went on to win a contract for 190 from the City of Cape Town to be built locally from kits prepared in our Yorkshire plant. Their progress has been impressive and to date they have built over 80 buses, of which the first 30 will enter service next month as planned."

How many more kit form buses have Optare got to build I wonder? Maybe they have already been shipped. Accounts due next month I think, could be very interesting! Optare must surely be about to turn the corner, which is more than can be said for Steph McGovern on BBC Breakfast News. (I doubt she would get a job in Optare's PR section!) :- Oops!

I'm saying nothing! :-)

Silence is golden! :o)

Optare's 10,000th bus goes to Jersey.

New green buses unveiled in Warrington.

The Company announces that Jim Sumner, will step down from the Board and leave the company as a Director and CEO from 31 December 2012. Jim joined the Board in June 2009 with the objective of managing the turnaround of the business. From a challenging position, the Board believes that all the principal objectives of that turnaround have been substantially achieved in terms of restructuring, new factory investment, low carbon product developments and refinancing. Jim now feels that the time is right for him to move on and pursue other business interests.

The Board has commenced the process to find a permanent replacement and will make a further announcement in due course. In the interim, Per Gustav Nilsson (known as "PG"), a current non-executive director, will assume the role of interim CEO whilst the Board searches for a permanent replacement for Jim. PG has considerable experience in the industry having held positions as Managing Director of Scania CIS, followed by four years as Managing Director of MAN Russia.

Glenn Saint will continue in his role as CTO and also act as deputy CEO.

John Fickling, Chairman, commented, "I wish Jim all the very best for the future. He has done an outstanding job in turning the business around from what was an extremely difficult position back in June 2009. We sincerely thank him for his unwavering leadership, clear direction and total dedication."



Well, Jim said in June 2009 that he had a 3 year plan, I wonder if he included himself in that at the time! He would appear to have done a decent job so good luck to him.

Epsom drivers and passengers like their new Solos!

Warrington Versas now in service.

Optare is one of the stocks featured in "Hoogi's UK Share Portfolio" on Facebook. Description of the stock is very brief (yet still one of the longest descriptions there!)

A bit more on Epsom.

Winner of the SMMT Award for Automotive Innovation is Optare for UK's 1st full-size electric bus.

Audio interview with Jim Sumner, Chief Executive.
Optare is pleased to confirm that it has won the Uk automotive industry's prestigious annual award for innovation for its fast charging Versa EV bus which entered service in June this year.

Click the link below to listen;
http://www.brrmedia.co.uk/event/106949/jim-sumner-chief-executive

Thanks for that js.

This is encouraging as well:-

“It’s fantastic to have a champion that truly demonstrates why the UK is recognised as a world-leading technological innovator.”

I have been following this thread due to my holdings in TRK. Looks like both companies are now on the up and have a strong common interest in economic vehicles with lowered running costs with TRK technology being explored with Optare.

Likewise, I have been following TRK though I do not yet hold any shares in the company. Agreed, it does look encouraging for both companies.

29 new UK registrations in November. Not bad!

Ashok Leyland must be pleased with their subsidiary.

Can't see them being too upset at the moment!

sp doesn't reflect that.

Sadly, no!

I'm looking forward to s Trading Statement in the near future though!

Half Yearly Report

OPERATIONAL HIGHLIGHTS*

· Year on year UK market registrations up 46% for the 6 months ending September 2012;

· Export sales revenues reached a record £10.5m for the 6 months in FY 2013; and

· In the quarter from July to September, Optare achieved the significant milestone of turning an EBITDA profit of £146,000

· Continued investments made in low carbon product developments, recognised recently by winning the Society of Motor Manufacturers and Traders prestigious annual Innovation Award for our fast charging Versa Electric Bus, launched in June this year.

FINANCIAL HIGHLIGHTS*

· Sales revenues increased 106% from £22.7m (H1: 2011) to £46.7m in H1 FY 2013 ;

· Direct labour reduced from 15.2% (H1: 2011) to 7.9% (H1 FY2013) and administration costs (for the same period) reduced from 23.7% to 10.2% of sales revenues due to benefits of restructuring, factory consolidation and higher revenues;

· EBITDA losses reduced by 54% from £2.54m (H1: 2011) to £1.18m (H1 FY2013). However these losses were incurred during the first quarter (April to June 2012) before completing closure and clearance of the Blackburn site, sale of the balance of the Rotherham site and full ramp-up in sales output as part of the turnaround plan; and

· Loss per share reduced from 0.6p to 0.1p


* During the year the Company's accounting reference date was changed from 31 December to 31 March. Accordingly, references throughout to H1 2011 are for the period from 1 January 2011 to 30 June 2011 and references to H1 FY2013 are for the period from 1 April 2012 - 30 September 2012.

Come on Kim, keep the thread up to date !!!!!!!!!!!!!!!!!




CATEGORY: SMALL CAPS NEWS SECTOR: INDUSTRIAL ENGINEERING
Sales revenue up 106 per cent for British bus designer Optare
Wed 19 Dec 2012



LONDON (SHARECAST) - Sales revenues at bus designer Optare increased by 106 per cent to 46.7 million pounds in the six months to September 30th 2012, compared to the corresponding period last year, interim results for the company have shown.

The group’s half-yearly results revealed that year-on-year UK market registrations were up 46% for the six months ending September 30th 2012. Export sales revenues reached a record £10.5m and in the quarter from July to September, Optare produced an Earnings Before Interest, Tax, Depreciation and Amortisation profit of £146,000.

The loss per share decreased from 0.6p to 0.1p.

During the year, the company's accounting reference date was changed from December 31st to March 31st. Accordingly, the company stated that references throughout to H1 2011 were for the period from January 1st 2011 to June 30st 2011 and references to H1 FY2013 were for the period from April 1st 2012 to September 30th 2012.

Commenting on the interim results and the three year turnaround, Chief Executive Officer, Jim Sumner said: "I am delighted with the significant progress we have made against the turnaround plan and would like to take this opportunity to thank the board for their support and the efforts and commitment of the entire organisation over what has been a very challenging period for the business. I have every confidence that Optare will go from strength to strength as part of Ashok Leyland's global business."

Optare’s share price was up 7.14% to 0.60p at 08:34 on Wednesday morning.

Sorry DC! Been a bit busy, skinny added some yesterday. Results more or less as expected. Pivotal year coming up!

Only joshing, a merry christmas

You too DC!

Contract Win

Optare is pleased to announce that it has won a contract valued at £6.2 million to supply Arriva with a mix of 50 single deck 11 metre and 11.7 metre Versa's for delivery in 2013.

Jim Sumner, CEO, commenting on the order said, "This is great news going into the New Year and demonstrates that investing in new fuel efficient products targeted at the major fleets is the right strategy."

So, it's Optare Versus the rest then?! Oh, it's too early to attempt a joke! :o)

Contract Win

Optare is pleased to announce that it has won a contract valued at £3.3 million to supply Stagecoach Group plc ("Stagecoach") with a mix of 33 Solo's and Versa's for delivery in 2013.

Chris Wise, Commercial Director, commenting on the order said, "This repeat order results from the good reliability, fuel efficiency, and both driver and passenger acceptance of this and its predecessor model in a variety of demanding operating conditions. The Cummins-Voith driveline is new to Optare and is being fitted at the specific request of Stagecoach. It further demonstrates our ability to meet a wide range of specific customer requirements in terms of vehicle drivelines, whether it's, alternative fuels, hybrid, full electric or conventional diesel".

26 new registrations in January 2013 v 14 last year.

There is an upbeat article in Route One magazine this month which includes confirmation that a Double Decker is to be launched next year.

Down 9% today.

Back up again!

Maybe this is why it made a little recovery:-

Achtung!

Having won some presigeous Award for their Electric bus development, OPE are unlikely to be a big customer for IC engine-tech gearboxes....IMHO .....and I'm not aware of any tie with TRK, other than they can buy Allinson Gearboxes . . . but then so can their rivals.
Surely Electric is the future for some Bus Routes with a known route and ability to charge built into the timetable, for example.

I'm not sure what the present position is Hangon but Optare have been trialling a Mechanical KERS system developed by Torotrak and partners. The trials, I believe, were successful but at the moment I do not know any more.

Contract Win

Optare is pleased to announce that it has received an order from Nottingham City Council to purchase 20 electric buses, for a total value of more than £4 million. The purchase further enhances Optare's position as one of Europe's leading manufacturers of full-size, commercially viable battery-powered electric buses. This contract sees one of the largest orders for electric buses placed in the UK and allows Nottingham City Council to take the lead in the introduction of this advanced technology, enabling a quieter, smoother and emissions-free travelling experience for passengers, with what is thought will be the largest EV bus fleet in Europe.

Optare's new small and accessible bus - the Bonito - is making its debut in Scotland and to the UK local authority market at the Association of Public Service Excellence Fleet, Waste and Grounds services show at Aviemore (Wednesday 8th and Thursday 9th May).

http://www.optare.com/pr_29_04_13.htm

I hope they can sell a few!

Strategic Partnership

Optare is pleased to announce that it has entered into a strategic partnership with Dawsonrentals bus and coach limited ("Dawson's").

Pursuant to the agreement Dawson's have placed an initial order for 50 Optare Solo buses for delivery over the next six months.

The agreement gives Dawson's access to Ashok Leyland's international sales force to facilitate the disposal of its used vehicles in right hand drive markets outside of the UK and, in return, purchase new replacement vehicles for its rental fleet from Optare.

Glenn Saint, Deputy CEO said, "This groundbreaking reciprocal collaboration will enable Dawson's, through the purchase of Optare buses, to replace its rental fleet with new, improved and more fuel efficient vehicles. The Agreement benefits Dawson's by creating an outlet for its used vehicles in countries where the initial purchase price may be an obstacle to the acquisition of brand new buses. It will also reduce the excess of ageing vehicles in the UK market."

Dawson rentals have over 2000 vehicles but I don't know how many are buses.

They seem to have quite a selection - Dawson Rentals bus and coach limited

They appear to have room for a few Bonitos Skinny!

Oh, and some double dockers when they come into production!

We can but hope.

I'm going to Hope this evening, it is a village near Wrexham!

Starting to look up.

Got a ticket to ride Skinny?!

Be nice to see it up by more than the spread!

I'll second that! It will be interesting to hear what Optare have to say about the state of play later this month with maybe a word or two regarding the Bonito. New registrations figures out tomorrow.

Contract Win

Optare is pleased to announce that it has delivered 18 of its Versa models pursuant to a purchase order with First Cymru for operation in South Wales. The contract is valued at £2.66 million.

Two versions of the low-weight midibus model are being supplied: nine are the 11.1 metre model and nine are the new 11.7 metre model, with seating capacities of 36 and 40 respectively.

First Cymru have specified a high standard of passenger comfort on their new Versas with features such as leather-trimmed Esteban Civic V2 seats and free Wi-Fi connectivity. There are two spacious wheelchair/buggy bays, one on each side of the bus, each with three inward facing tip up seats to optimise the carrying capacity, and which can be accessed immediately on entry by means of a robust 'book leaf' type fold-out ramp. Hanover LED destination equipment is fitted to the front, side and rear.

Final Results

Operational Highlights

· Winning the prestigious society of motor manufacturers and traders (SMMT) award for innovation for fast charging Electric vehicle (EV) technology.
· Launch of 3 exciting new products, Metrocity, Versa 11.7m and Bonito.
· Completed 10,000th bus since Optare formation in 1985.
· Investment in a new paint shop and engineering systems to continue to deliver high quality engineered products.
· Successfully completed the export of 177 Solo kits to the City of Cape Town, this is the highest ever export order achieved by the company.

Financial Highlights

· Revenue for the period is £75.9m a growth of 6% over prior period of 15 months to 31 March 2012.
· Direct labour costs were 7.6% of revenue a reduction of 6.0% compared to 13.6% over the previous period.
· Pre-exceptional gross profit was 6.9% of turnover over the 12 month period (4.9% for 2011-12, 15 month period).
· Pre-exceptional administration costs were 11.6% of turnover over the 12 month period (15.0% for, 15 month period from 31 December 2011 to 31 March 2012).
· EBITDA Pre exceptional losses were £3.6m (£6.8m for 15 month period from 31 December 2011 to 31 March 2012).
· Exceptional costs of £1.8m were for continued Blackburn site closure, redundancy and restructuring costs.
· Loss per share reduced from 1.4p per share to 0.3p per share.
· New increased banking facilities established with three year term loan and one year overdraft facility.

Overall, not quite as bad as I had feared, there is still life in Optare land but why are they taking so long to replace Jim Sumner? I might apply for the job if they don't sort it soon!

Still slipping.
+ There has to be something wrong with this Co . . . but what?

It seems that whatever contracts they win, the sp is soon sliding.

Do they have massive Debt?
Do they have Pension Liability?

...Anyone...?
EDIT(6Jan2014)- see RNS....seems there was a huge debt, which is "fixed" by £20m overdraft facility - just hope that doesn't spell DfE if the Bank has a wobble!. . . They are concentrating on "Overseas Markets" - but IMHO it looks like desperation - and it's very difficult for us Punters to value. We can't see the export busses, etc. A new double-decker ( 2014), might look good, but on the streets of London - that would be a shop-window for their Exports . . . how about it, Optare?
EDIT (25Feb2014)-sp abt 0.25 pence OOps! compared with Much that long ago. I read (DYOR) a new Director appt. it reads that he's finance and batteries . . . .I wonder if someone sees this as an opportunity?
EDIT(6Oct2014 )- sp 0.17 - is this yet worth a punt?

I've still got some of these - worth about the price of a decent Christmas dinner!

Mine are worth the price of a Christmas pud! Still, the company has something to celebrate - they have just sold 2, yes 2 buses! Oh, and one of them is electric. Happy days at Optare! 😝

Contract Win



Optare is in receipt of a purchase order for 10 Versa and 27 Solo SR, Euro 6 vehicles at a value of £4.9 million from Ulsterbus Limited.

Versa deliveries will commence in August 2014 with the Solos to follow in September 2014.


Will they make a profit on the sales though?!!

I'm only 60% down now!

Contract Win

Optare is pleased to announce that has received an order for a total of 17 Solo electric buses at a value of £3.6 millionfrom Nottingham city Council. The order was partially funded by round 4 of the Government's Green Bus fund.

Delivery of the vehicles will commence in July 2014.

The last 2 orders are more than Optare's market cap! Let's hope that they have their sums right and make a profit. You may find yourself at break even and maybe in profit Skinny!

Is that an April fool!

Lol!

Contract Win

Optare has received an order for a total of 13 Versa hybrid buses and 3 Versa electric buses at a total value of £3.5 million from Transport for Greater Manchester. The order was partially funded by round 4 of the Government's Green Bus fund.

The vehicles are expected to be delivered in July. The three Versa electric buses will be the first fully electric low-entry buses to operate in Manchester.

Well, you wait for ages for an order to come, then along come three! 😀

Surreal!

Telegraph has revealed the new double decker from Optare, at 3:30pm today.

article with images


Boris Johnson, the Mayor of London, said this was “an important development in the bus manufacturing industry and is testament to the hard work the Hinduja Group has achieved since taking control of Optare”.


PS: Astute observers spotted it yesterday on the Facebook page of Sparrow Recovery, who showed off their low-loader with this (thinly disguised) bus on the back, on the way to its launch in London today.

They are a little late with their RNS!

http://www.moneyam.com/action/news/showArticle?id=4817182

Half Yearly Report

New Loan Facility

Optare receive loan from Ashok Leyland for future product development

Optare announces that it has today entered into a £1.5 million loan facility agreement with Ashok Leyland (UAE) LLC (the "Facility Agreement"). The loan will be for an initial period of 12 months and be subject to an interest rate of LIBOR +3.5% per annum, with the proceeds to be used to support on ongoing corporate and operational working capital requirements.

Given that Ashok Leyland (UAE) LLC is a subsidiary of Ashok Leyland Limited, the Company's major shareholder, entry into the Facility Agreement is classified as a related party transaction in accordance with the AIM Rules. Accordingly, the independent directors, having consulted with the Company's nominated adviser, consider the terms of the Facility Agreement to be fair and reasonable insofar as the Company's shareholders are concerned.

Contract Win

The Company is pleased to announce that Optare has received an order to the value of £7.3 million from Stagecoach UK Bus ("Stagecoach"). It is expected that deliveries of new Euro 6 Optare Solos of varying specifications to Stagecoach will be completed by the end of 2015. This order is in addition to 5 fully electric vehicles to be delivered this month.

Enrico Vassallo, CEO, Optare, said, "We are delighted to be supplying more Optare vehicles to Stagecoach. In line with the Stagecoach greener, smarter, travel strategy these Solos will be the first Euro 6 vehicles Optare have supplied to Stagecoach."

Nice picture, Skinny did you take it perhaps?( Prob not eh?), - but what I'd like to know is what do you think of this outfit . . the sp has been finding the bottom for too long and Dir-buying has been woeful . . .
Does the Loan frighten Investors . . . I don't get it.
I know OPE suffered from a bad History - is that behind it, or is there a smell luring, still?

The picture(s) are from their website.

I've held these for about 3 years at a price some way North of where it is now.

They are perceived - at least by me, to have lost their way slightly and the story is one of 'jam tomorrow' as they survive between RNSs - but that's just my jaundiced view!

I missed this RNS earlier - Appointment of Chief Financial Officer

I've seen many Optare buses stuck in a jam skinny! :o) As far as the company and sp are concerned, the only way now is up. Or down!

http://http://Local MP visits Optare

Add him to the sales team then, he may have nothing else to do soon!

Another one bites the dust.

Proposed cancellation of trading on AIM

Top faller today off 50%.

Such a shame that ineffective Management cannot keep the company worthy of Retail investors...IMHO...That they have a Major shareholder in the wings which with Management hold 75% of the shares, means that AIM-investors have had their miserable savings slashed 50% today - and that was on top of major slides over the last 3-5 years.
They know how to make Buses - but I still wonder if they are profitable...and the other company is really in charge - so the sooner the OPE-Management is shown the door, the better for Customers and Employees.

Only, one wonders if the other company will asset-strip and move the Works elsewhere, = the end for the employees... give it 2-years, maybe.

I really wanted this co to be a success, but it seems the Management wasn't up to the task..... there is no-one else to blame, unless you know different. . . . .

What's that song?....."We're on a road to nowhere
Come on inside
Takin' that ride to nowhere."

Well, I hope we see brand new Optare buses on our roads for many years to come, built in Britain preferably!

Result of General Meeting

Optare plc ("Optare" or the "Company") announces that the Resolution proposed at its General Meeting held today in connection with the proposed cancellation of the Company's ordinary shares of 0.1p each ("Ordinary Shares") to trading on AIM ("Cancellation"), was duly passed.

Accordingly, it is expected that Cancellation will become effective at 7.00 a.m. on 2 June 2015. Shareholders should note therefore that the last day of dealings in Ordinary Shares of the Company on AIM will be 1 June 2015.

Optare will make available to Shareholders an off-market trading facility for the Ordinary Shares, which will be administered by Capita IRG, based on matching bargains, where buyers' and sellers' price expectations match. Under this third party facility, Shareholders or persons wishing to acquire or dispose of Ordinary Shares will be able to leave an indication with Capita IRG that they are prepared to buy or sell at an agreed price. In the event that Capita IRG is able to match that order with an opposite sell or buy instruction, it would contact both parties and then effect the bargain. More details of the facility will be made available on the Company's website at www.optare.com.

NOTICE OF CANCELLATION OF ADMISSION TO TRADING ON AIM

Cheerio AIM! Next stop for OPE is to go BUSt maybe?! They seem to be selling more buses now though!