Financial difficulties at Newport's council-owned bus operator have delayed its annual accounts, while the company has simultaneously undergone a major restructuring of its board of directors, according to information obtained by a national broadcaster.
Newport Transport failed to meet the deadline for filing accounts covering the year ending March 2025, and faced compulsory strike-off action by Companies House before the process was suspended earlier in the week. As of September 2026, the company's accounts remained listed as overdue on the Companies House register, with the filing deadline having been 26 June 2026.
Opposition councillors have characterised the situation as a "crisis" and demanded "transparency" from Newport council, which serves as the company's sole shareholder. The council acknowledged being "fully aware of the financial challenges" but provided limited detail on the company's position.
What caused the accounts delay?
Initially, Newport Transport attributed the missed deadline to delays in preparing its accounts. However, Newport City Council later clarified that the delay stemmed from financial challenges affecting both the preparation process and the audit itself.
The company's most recent publicly available accounts, covering the year to March 2024, showed a pre-tax profit of £884,000. However, this figure masked underlying vulnerabilities: the company relied on a Welsh government grant exceeding £7.3m during that period. According to later reporting on the filed accounts, the company generated £13.1m in turnover but remained heavily dependent on public funding.
Directors attributed this dependency to reduced passenger numbers following the Covid pandemic. However, management figures reviewed later in 2024 revealed a concerning shift: the company recorded losses of approximately £2.3m by November 2024. According to analysis of the company's financial position, passenger numbers had risen 19% during the year but remained below pre-pandemic levels, suggesting that recovery alone would not resolve the operator's financial pressures.
Why is the company facing such difficulties?
Directors attributed the £2.3m loss to two principal factors: the transition away from Covid-era support schemes and a heavy reliance on agency drivers, which proved significantly more expensive than permanent staff. These cost pressures emerged as government emergency funding wound down and the company moved towards tendered contracts.
The financial strain prompted Newport City Council to approve significant changes to the company's governance. Earlier in the month when the accounts crisis emerged, councillors replaced five Newport Transport directors with a new group of board members. A council report stated that these changes were intended to strengthen governance and oversight during a period of "significant regulatory and strategic change."
What is the depot sale and how does it relate to the crisis?
In an effort to stabilise the company's finances, Newport Transport agreed to sell its Corporation Road depot to Transport for Wales (TfW) for £3.25m and lease it back while continuing to operate from the site. Under the proposed arrangement, the company would receive a rent-free first year before paying annual rent of just over £303,000. Importantly, Newport Transport retained the right to buy the depot back if the Welsh government's planned bus franchising programme does not proceed.
Newport City Council described the transaction as a strategic step ahead of the Welsh government's planned bus franchising model, under which responsibility for planning local bus services would transfer to TfW. The council stated that the purchase represented "a strategic property acquisition that will help enable franchising in south-east Wales, secures strategically important infrastructure, and supports network continuity."
However, the council did not confirm whether the proceeds from the depot sale would be used to support the bus operator's financial position or assist in filing its overdue accounts. When asked about the matter, TfW referred enquiries to the Welsh government, which responded that discussions about the bus depot were ongoing and that "the financial position of Newport Transport is a matter for them and their shareholder, Newport City Council."
What are opposition councillors saying?
This is a crisis, said councillor William Routley, deputy leader of the opposition Conservative group on Newport City Council. Routley expressed being
absolutely shockedthat the company had yet to file its accounts.
Because there hasn't been full disclosure, because we haven't seen what state the company's accounts are in, we are asking for transparency on this, he added. Routley argued that councillors deserved to see
the actual balance sheet, liabilities, debt and audit standardsin order for them to
support the direction that needs to be takenby Newport Transport.
What happens next?
Newport Transport's next confirmation statement is due to Companies House by 20 November 2026. The company has not responded to requests for comment regarding its financial position, the delayed accounts, or its plans to address the underlying challenges.
The situation reflects broader pressures facing bus operators across Wales as they navigate the transition from emergency pandemic support to sustainable commercial and tendered operations. For Newport Transport, the combination of reduced passenger revenue, high agency staffing costs, and the need to prepare for potential franchising under the Welsh government's planned model has created a complex operational and financial environment.
Key Facts
- Newport Transport missed the statutory deadline to file accounts for the year ending March 2025, triggering Companies House strike-off action before the process was suspended
- The company reported a pre-tax profit of £884,000 in the year to March 2024 but relied on more than £7.3m in Welsh government grants to remain viable
- Management accounts showed losses of approximately £2.3m by November 2024, attributed to the end of Covid-era support and expensive agency driver reliance
- Newport City Council approved the replacement of five board directors with new appointees to strengthen governance during a period of regulatory and strategic change
- The company is selling its Corporation Road depot to Transport for Wales for £3.25m and will lease it back at an annual rent of £303,000 after a rent-free first year
