Kelsian shares rise on $260m Jersey government contract win
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More news: Shares in Kelsian Group lifted after the transport provider's subsidiary LibertyBus won a 10-year contract renewal with the Department of Infrastructure and Environment of the Government of Jersey.
Kelsian shares were up 2.9% to $4.24 by 12:40pm AEDT. The company's share price has been cut by nearly 40% since January.
Kelsian Group renews $260m contract with Jersey government
The news: Transport provider Kelsian Group’s subsidiary LibertyBus has won a 10-year contract renewal with the Department of Infrastructure and Environment of the Government of Jersey.
The numbers: The contract is estimated to provide $260 million in revenue over the 10 years and will commence on 6 April 2025.
The context: Under the contract, LibertyBus will operate and maintain all public bus services for self-governing Channel island. It will also commit to replacing existing buses it owns and uses for the current contract over the life of the contract.
LibertyBus is also aiming to grow its zero-emission fleet so that the majority of the fleet is battery electric by 2035.
Kelsian, however, lost its bid to renew its contract for operating bus services in Guernsey, which will now expire on 31 March 2025. The company said the contribution from the Guernsey contract “is not material”.
What they said: Kelsian UK managing director Samuel Ribeiro said: “Since we began operations in Jersey we have introduced several initiatives that have improved the reliability and sustainability of public transport including introducing the first battery electric buses and enhancing the customer experience with the implementation of our proprietary bus app that improves the customer experience”.
The source: ASX announcement
