Kelsian Group Limited (ASX:KLS) has announced that its UK subsidiary, Huyton Travel Limited, has been awarded the Liverpool City Region Combined Authority (LCRCA) contracts for bus services. Kelsian Group is a leading global operator of bus, motorcoach, and marine transport services, trusted by governments and private clients to deliver safe, reliable, and sustainable passenger transport solutions. The contracts form part of the Tranche 1, Category 2 of the Liverpool Bus Franchising program.
The contracts with LCRCA involve the operation and maintenance of 73 buses operating services from two leased depot facilities. The initial contract term is for five years commencing in January 2027, with a further two-year extension option. These contracts are expected to generate approximately $80 million in total revenue across the term, including the potential extension period. The company noted that these contracts include revenue indexation mechanisms, protecting the business from fluctuations in the cost base of key inputs like diesel fuel.
Kelsian anticipates a new capital investment of approximately $8 million will be required, with an estimated $2.4 million to be incurred in FY26 and the remainder in FY27. Securing these contracts demonstrates the strength of the Group’s operating model in regulated public bus transport markets and the capability of the UK management team.
The transition to a franchised model in Liverpool is part of a significant structural shift in the regional UK bus market. Kelsian intends to participate in future bidding processes for additional bus service franchise opportunities via LCRCA’s Tranche 2 tenders, expected to be released later in 2026, involving approximately 500 vehicles.
