EL7.AI
StocksMedium•2 November 2026•
2 min read

FirstGroup Deal to Sell West Yorkshire Transport Assets Valued at £109 Million

Key Facts

1The transport asset sale agreement is valued at £109 million, alongside FirstGroup winning two bus franchising contracts.
2The company expects to redeploy about 130 buses, with an additional cash benefit of about £10 million over the two years following the announcement.
3FirstGroup shares rose 3.1% to 223.6 pence, setting a new 52-week high.
4The diesel fleet retained for the Bramley contract is valued at about £9 million.

FirstGroup announced an agreement with the West Yorkshire Combined Authority to sell transport assets for £109 million, alongside winning two bus franchising contracts, Investing.com reported on November 2, 2026. The agreement places transport assets within the region’s transition to a franchising system run by the authority. FirstGroup will continue operating bus services under the two contracts it won. Investing.com said the company’s shares rose 3.1% to 223.6 pence following the announcement. The shares thereby set a new 52-week high, according to the report.

The company expects about 130 buses to be redeployed to other parts of the group after the five depots move to the franchising system. It said the redeployment would defer some capital expenditure and working capital requirements. It estimated the additional cash benefit at about £10 million over the two years following the announcement. According to Investing.com, this benefit comes on top of the £109 million asset value. The depot transfer therefore also affects how the company uses its fleet and operating resources across the group.

Under the franchising model, the West Yorkshire Combined Authority retains revenue risk and sets service levels, while FirstGroup operates the services. According to Investing.com, the company receives payment for providing the service regardless of passenger numbers. The authority also owns the depots and buys the electric buses, which operators lease for a nominal rent. This arrangement changes how responsibilities are divided between the public body and the operator: the authority bears revenue risk, while the company retains operational responsibility. The agreement also includes diesel buses that will remain owned by FirstGroup for use on the Bramley contract.

The diesel fleet that FirstGroup will retain for the Bramley contract is valued at about £9 million at the start of the franchise. The company will use these buses throughout the contract and then transfer them to the next operator at an agreed residual value, according to Investing.com. The system’s launch follows a 2024 decision by the Mayor of West Yorkshire to move to bus franchising. The authority said the system gives it control over fares, routes, timetables, vehicles and depots across the “Weaver” network. The regional decision sets the framework for the new arrangement, which combines the authority’s ownership of assets with companies’ operation of services.