Staff at one of the UK’s most successful companies will this morning (20th January) be reflecting on twenty years of success. FirstGroup, the UK’s largest transport operator, today celebrates its 20th anniversary.
On 20 January 1989 Moir Lockhead, then Managing Director of Grampian Regional Transport, and his team of directors completed an ambitious and groundbreaking employee and management buy-out of the company. They successfully bought the bus company from Grampian Regional Council and with that took command of 600 staff and 225 buses. The following twenty years represented a remarkable and meteoric success story.
Today FirstGroup is a FTSE 100 company, boasts annual revenues of some £6 billion, a workforce of 137,000, an 80,000 strong bus fleet, is the UK’s largest bus operator, the UK’s largest rail operator and the largest provider of yellow school buses in North America. It moves some 2.5 billion passengers every year and is the world’s leading transport company.
Past and present directors, including the team that brokered the employee and management buy-out and First staff, including bus driver Eric Robertson who boasts 43 years service, gathered yesterday at the firm’s King Street headquarters in Aberdeen. They were joined by a selection of past and present buses reflecting the transport history of both First and Aberdeen.
Sir Moir Lockhead, who has been Chief Executive of the company since 1989, reflecting on the last 20 years said: “No-one could have predicted such an astonishing success story. When leading the employee and management buy-out in 1989 our main priorities were not only to ensure that we continued to run value for money, safe, reliable bus services for our customers, but also that the company kept its head above water financially.
“It has been an incredible journey. I have always maintained that much of our success can be attributed to our principles of safety and customer service. However, the main reason for our achievements is due to the quality of our staff. Across the board we have always employed the very best people that the transport industry has to offer. We have also been fortunate in having a good team of advisors, especially in 1989 and in particular Martin Gilbert who is now our Chairman.”
Joe Mackie, First in Aberdeen’s Commercial Director, was one of the directors instrumental in the employee and management buy-out. He said: “Moir was the driving force back in 1989, just as he is today. His ability to spot an opportunity is second to none. Although the buy-out was something of a gamble at the time and many outside the company were sceptical, Moir’s unwavering leadership and confidence was reassurance and motivation to us all. His instincts were, as usual, proved correct.”
In 1989 all staff were given free shares in the company, the number depending on the number of years service to the company. Many employees have benefited tremendously – some realising more than £50,000. Even today, more than 50% of First shareholders are past and present employees. Additionally, First has employees sitting on the boards of two thirds of its companies in the UK, including the FirstGroup plc board.
Sir Moir Lockhead concluded: “The future for FirstGroup remains as exciting as it did 20 years ago. The company has grown very quickly in a very short space of time, and I am confident that the company will continue to grow and prosper.”
In 1989 the key people involved in the employee and management buy-out were as follows:
Sir Moir Lockhead
1989 Job Title: Managing Director, Grampian Regional Transport
Current Position: Chief Executive, FirstGroup
Joe Mackie
1989 Job Title: Commercial Director, Grampian Regional Transport
Current Position: Commercial Director, First in Aberdeen
Robbie Duncan
1989 Job Title: Finance Director, Grampian Regional Transport
Current Position: Governor, Robert Gordon University; Non-executive director of CLAN
Gordon Mills
1989 Job Title: Engineering Director, Grampian Regional Transport
Current Position: Retired
Colin Smith
1989 Job Title: Operations Director, Grampian Regional Transport
Current Position: Retired
Sid Barrie
1989 Job Title: Partner, Paull & Williamsons
Current Position: Commercial Director, FirstGroup
Martin Gilbert
1989 Job Title: Partner, Aberdeen Asset Management
Current Position: Chief Executive, Aberdeen Asset Management Chairman, FirstGroup
Keith Mair
1989 Job Title: Investment Director, 3i, Aberdeen
Current Position: Retired
Ian Gellatly
1989 Job Title: Senior Manager, Bank of Scotland
Current Position: Retired
David Shearer
1989 Job Title: Partner, Touche Ross
Current Position: Non Executive Director of various companies
The buses on show at FirstGroup’s global headquarters on King Street were:
2009: Gemini double decker
1989: Leyland Olympian double decker
2002: Authentic yellow school bus
1930: Albion
