(09 Aug 2017, 7:00 pm)Dan Poor planning by Stagecoach, then? If a batch of buses had such a high book value, the company should not have planned to replace them, especially if there was little chance of them being sold on for further use or transferred elsewhere within the group.
It won't be keeping the company's accountants happy either way - making a loss on a bus when selling it due to it having such a high book value, or a revenue-earning asset sat dormant in the corner of a depot depreciating.
It's doesn't seem to be the most efficient way for Stagecoach to do things.
But considering 'Sir' Souter and his sister own 55% of ADL, and its their products Stagecoach are buying, it may be part of a bigger play of how Barry (I think he'd hate that nickname
) moves his money around.
If Souter inflates Stagecoach's new vehicle order to boost ADL's profits, he could have a double win by reducing the profit, on paper, Stagecoach makes - therefore paying less tax. The accountants don't mind as all the money is still there, just in the form of MANs rather than tax bills.....just a theory.
