UK firm plans £42m AIM float to boost German bus expansion

BRITISH investment group Marwyn Management has confirmed that it is looking to float its transport subsidiary and raise around €50m (£42m) of new capital.

Marwyn European Transport (MET) specialises in the German bus sector, which is highly regulated and fragmented. MET believes this presents an opportunity to build up a substantial business and profit via economies of scale.

Marwyn says it expects MET’s total revenues for 2013 to hit £26m. It said operating profits for bus routes that are contracted out would be £1.9m, although this figure fails to take into account head office costs and losses on express inter-city bus routes.

“The Board believes that the proposed flotation of MET is consistent with its commitment to exploring all options for delivering value to shareholders,” the firm said in a statement. It intends to retain a shareholding in MET after the float.