Kelsian Group Limited (ASX:KLS) has announced that its UK subsidiary, Huyton Travel Limited, has been awarded bus service contracts by the Liverpool City Region Combined Authority (LCRCA). 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 involve the operation and maintenance of 73 buses from two leased depot facilities. The initial term is five years, commencing in January 2027, with an option to extend for a further two years. Kelsian anticipates the contracts will generate approximately $80 million in total revenue over the contract term, including the potential extension period.
Kelsian expects to invest approximately $8 million in new capital for the contracts, with an estimated $2.4 million to be incurred in FY26 and the remainder in FY27. According to Kelsian, securing these contracts demonstrates the strength of its operating model in regulated public bus transport markets and the capability of its UK management team.
Samuel Ribeiro, Kelsian UK Managing Director, expressed pleasure in being awarded the contracts, highlighting the confidence in their ability to deliver reliable and safe transport solutions. He also noted that the contracts include revenue indexation mechanisms, protecting the business from cost fluctuations, including diesel fuel costs. The Liverpool bus franchising program is rolling out in stages, with additional franchise opportunities expected in the future. Kelsian intends to participate in future bidding processes.
