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ECONOMY ;ETS

17th June 1977, Page 44
17th June 1977
Page 44
Page 45
Page 44, 17th June 1977 — ECONOMY ;ETS
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Which of the following most accurately describes the problem?

UP PROFIT A

NBC

PROFITS of £24.2 million before tax have been reported by the National Bus Company compared with a £1.9 million loss in 1975.

In his annual report NBC chairman Sir Frederick Wood comments that the result has been achieved against a background of inflation, unemployment and a lack of economic growth.

The report reveals that with tax and depreciation taken into account, the company still made a profit of over £41 million despite increases in costs and a r Eduction in the demand for services.

Sir Frederick paid tribute to the dedicated workforce facing a "severe task" during 1976.

He attributed the profits to increased fares revenue, economies in services and the support from county councils for socially necessary services.

Gross revenue for NBC services in 1976 went up by 19 per cent to £358 million — and £15 million came from revenue support grants made by county councils. Expenditure on operation, rose by only 10 per cent durinj the year because of thE reductions in services am streamlining and Sir Fredericl says that cuts and economie: will continue.

He also says that deliveries of new vehicles will increasi efficiency of the company': services — but he warned tha uncertainty in the levels o: support was reflected in reluctance to pay up by somE councils.

More uncertainty was or the horizon with the ending o: the new vehicle grants by 1980 under Government proposals, he said.

Sir Frederick also warned that the surplus was still not enough to finance the investment programme for the coming year.

He said that the performance was good but he said that other transport undertakings had been relieved of liabilities including interest on capital debts which he said would probably rise to £22 million by 1981 on a reduced level of service.

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