Highland Council’s decision to bring D&E Coaches into public ownership has delivered a profitable first full year, with the Inverness based transport operator recording £700,000 in profit after tax.
The Council purchased the business in March 2025 to help protect and strengthen essential transport services across the Highlands, including school buses, local routes and private hire.
Its newly published accounts for 2025/26 show turnover of £7.9 million, an operating profit of £1.113 million and a profit after tax of £700,000.
Importantly, no dividend has been paid or proposed, with all profits remaining within the company to support its financial position and future operations.
That decision has helped increase the company’s net assets to £4.706 million, providing a stronger foundation for continued investment in vehicles, infrastructure and services.
The positive results come at a time when transport operators across the country are facing increasing costs, making the financial performance particularly encouraging for the Council.
Councillor Ken Gowans, Chair of Highland Council’s Economy and Infrastructure Committee, said:
“The finalised accounts for D&E Coaches show a profitable first full year, a stronger balance sheet and continued investment in the business.
“Alongside this, D&E Coaches has continued to provide vital transport links for communities, support sustainable travel and contribute to the wider tourism economy, despite the rising costs facing the wider industry.
“This positive performance demonstrates the benefits of public ownership and reflects the hard work and dedication of the team.”
Since the takeover, D&E Coaches has continued operating its established services while securing additional contracts and increasing income from private hire.
The company has also benefited from workshop savings following investment in its fleet, alongside an expansion of its work with Scottish Citylink connecting major Scottish cities and visitor destinations.
Tourism remains an important part of the business, with sightseeing excursions and visitor services contributing to the local economy.
A new fully electric open top double decker bus has joined the fleet to support the Inverness City Sightseeing Experience, offering visitors another way to explore the Highland capital.
The operator has also introduced three fully electric double decker buses and supporting infrastructure, partly funded through the Scottish Government’s ScotZeb 2 programme.
Beyond tourism, the company continues to provide transport for schools, sports clubs, community groups and events across the Highlands.
That included supporting Belladrum Music Festival near Beauly, which welcomed approximately 24,500 festivalgoers between 30 July and 1 August 2026.
A compliance audit also returned positive results, with the company meeting all required operator licence standards.
Following the recent acquisition of Stagecoach North’s depots in Thurso and Wick, D&E Coaches now employs more than 100 people, extending its presence across the northern Highlands.
The expansion adds to the company’s role in maintaining transport connections in communities where reliable public and contracted services are especially important.
Councillors will consider the finalised annual accounts at the Economy and Infrastructure Committee meeting on Thursday 12 November.
For Highland Council, the results provide an encouraging first assessment of its investment, demonstrating that the company has remained profitable while continuing to provide essential services.
The longer term test will be whether that financial strength can be sustained while maintaining reliable, affordable transport for the communities that depend upon it.
