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FirstGroup PLC on Monday said it has bought Leeds-based bus operator Tetley’s Motor Services Ltd for an undisclosed amount. The Aberdeen, Scotland-based private company provides public transport through its First Bus and First Rail divisions. The latter operates Avanti West Coast and Great Western Railway under state contracts. Tetley’s and FirstGroup own adjacent bus depots in central Leeds. FirstGroup will integrate Tetley’s 55-strong fleet of coaches and buses into its First Bus business. The acquisition includes Tetley’s service contracts, ‘a high proportion’ of which were recently renewed, according to FirstGroup. The contracts are for schools, universities, workplace shuttles and private hire in Leeds and West Yorkshire. FirstGroup did not provide financial details of the acquisition, but said Tetley’s revenue in the year that ended March 31 was £5.3 million. Earnings before interest, tax, depreciation and amortisation totalled £1.4 million. Tetley’s Managing Director Ian Tetley will remain as a director to facilitate the transition into First Bus. FirstGroup Chief Executive Graham Sutherland commented: ‘[Tetley’s] is a well-established, profitable business with its own large, centrally located depot and a strong contract base. ‘As we work to grow our adjacent services market share, this strategic acquisition will complement our York Pullman and Lakeside businesses and expand our operational footprint and contract portfolio in one of our key markets.’ The deal comes after FirstGroup on Friday said that trading was in line with expectations for financial 2026, with adjusted earnings per share expected to be equal to or higher than the year prior. In financial 2025, the firm posted adjusted EPS of 19.3 pence. FirstGroup will publish its half-year results on November 18. Also on Friday, FirstGroup began the second of two £25 million tranches of buybacks, which it expects to complete by June 10, 2026. The firm repurchased 695,735 shares at an average of 218.60p each on Friday. FirstGroup shares were 1.9% higher at 223.20p on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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