Council-owned D&E Coaches delivers £700k profit while supporting Highland transport

6th November 2026

D&E Coaches has recorded a £700,000 profit after tax in its first full year under Highland Council ownership.

The Council purchased the coach and bus operator in March 2025 to support the ongoing provision of sustainable and reliable transport services across the Highlands.

In its annual accounts for 2025/26, D&E recorded a turnover of £7.9 million, with an operating profit of £1.113 million and a profit after tax of £700,000. No dividend was paid or proposed, and all profits have been retained within the company, increasing net assets to £4.706 million.

Chair of the Council’s Economy and Infrastructure Committee, Cllr Ken Gowans, 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 coming under Council ownership, D&E Coaches has continued to provide a full range of transport service including private hire, local bus and school transport services. The positive performance in 2025/26 has been supported by the addition of new contracts, increased private hire income and workshop savings resulting from investment in the fleet.

Key achievements in 2025/26 include:

Ongoing provision of visitor excursions and tours helping to support the local tourism market, including the addition of a new fully electric open double decker bus to the fleet to support the Inverness City Sightseeing Experience.

Further expansion of contracted services with Scottish Citylink, providing passenger and visitor links between Scotland’s major cities and attractions.

Introduction of three fully electric double decker buses and supporting infrastructure to expand the company’s zero-emission feel. This has been partly funded through the Scottish Government’s ScotZeb 2 funding.

Continued support for clubs, societies and groups across the Highlands, providing transport for matches, training and events.

Provision of transport services for the Belladrum Music Festival, near Beauly, which attracted around 24,500 festival-goers between 30 July and 1 August 2026.

Strong results from a compliance audit, with all operator licence standards met.

Continued provision of education-based transport and local school contracts.

D&E Coaches currently employs more than 100 people following the recent acquisition of Stagecoach North’s Thurso and Wick depots.

Councillors will be asked to note D&E Coaches’ finalised 2025/26 accounts at a meeting of the Economy and Infrastructure Committee on Thursday 12 November.