Our business model

Moving you and the next generation towards a smarter and healthier planet

Delivered through our strategy 

Improve performance

Grow organically and externally

Progress new opportunities

Our strategy

Supported by a strong financial profile

Strong market traction

  • Modal shift resulting from:
    • Policy regulation
    • Increasing fuel prices
  • Rapid urbanisation
  • Market liberalisation

Unique competitive positioning

  • Leading position in UK rail and London bus
  • Leader in electrical transition in the UK market
  • Industry leading passenger satisfaction scores

Resilient business model

  • Diversified portfolio by sector and geography
  • Limited exposure to passenger demand risk
  • Long-term contracts

Strong financial position with a proven track record

  • Track record of growth
  • Robust balance sheet
  • High dividend yield
  • Disciplined approach to capital allocation
     

Positive social and environmental impact

  • Science based targets to reduce carbon emissions
  • Delivering public transport – a vital element in tackling climate change
  • Services support social and economic inclusion

Experienced leadership

  • Leadership team with significant international experience
  • Highly respected MDs at operating company level

Reasons we’re successful

Approach

  • Strong capability un urban commuter markets
  • Customer focused decision making
  • Industry leading climate change strategy
  • Well defined values and behaviours

Market position

  • Leading position in UK rail, London bus and UK regional bus
  • High quality of service
  • Strong relationships with strategic partners and stakeholders
  • The UK’s largest operator of zero emission buses

Management

  • Experienced leadership
  • Devolved structure
  • Robust balance sheet
  • Strong risk management

Creates financial and non-financial value for all our stakeholders

Financial value

We provide value for money services, offering convenient alternatives to car travel against a backdrop of rising costs of private motoring.

Non Financial value

Our services facilitate our customers’ lives, connecting people with friends and family and enabling access to services, facilities, work and education. Our buses and trains provide safe and convenient places for people to use their travel time as they wish.

Financial value

We look after our people, paying competitive salaries and offering attractive benefit packages.

Non Financial value

We create safe and enjoyable inclusive working environments in which people are empowered and enabled to develop personally and professionally. We offer occupational health and other wellness services for both physical and mental health

Financial value

Our aim is to provide attractive total shareholder returns. We increased or maintained the dividend to shareholders every year between 1994 and 2019. Dividend payments are due to be resumed with respect to the year ending July 2022.

Non Financial value

Shareholders’ interests are safeguarded through the Board’s strong commitment to good governance. Investor confidence in the long term sustainability of the Group is built through our approach to operating responsibly, such as measuring and reducing our impact on climate change.

Financial value

We support suppliers in the UK and internationally through the procurement of goods and services. Our payment practices are aligned with the Prompt Payment Code. 

Non Financial value

Through our Sustainable Supply Chain Charter we demonstrate high standards of integrity, responsibility and professional conduct. We endeavour to support our suppliers to improve the sustainability of their business.

Financial value

Our contribution to the Government includes corporation tax and National Insurance contributions.

Non Financial value

Through our experience and expertise we help shape policies at national and local levels through our contribution to reviews and consultations. Through our activities we support government targets and objectives in areas such as climate change, diversity and social inclusion.

Financial value

Our services enable and promote economic activity in our communities, providing access to retail and leisure facilities, and work and education.

Non Financial value

We strive for our services to be accessible and inclusive. We promote social inclusion in our communities, often providing vital transport links to vulnerable people. We operate responsibly and are committed to maximising the role we play in slowing global climate change and improving air quality for our communities.