Award-winning operator Brighton & Hove Bus and Coach Company saw profits fall during the year ended 27 June 2009, according to its annual accounts. Results were affected by the onset of the recession and changes in traffic patterns following the introduction of England-wide free concessionary travel in April 2008.

Turnover in the business rose by 7.7% to £49.9m, whilst operating costs were over 10% higher at £45.4m. The directors report that revenue growth was driven largely by concessionary travel and fares increases, since commercial paid-for journeys fell by 0.1%, and it is estimated that there was a switch of around 2% from paid to free travel.

Revenue growth was outstripped by the rises in operating costs, particularly labour, fuel and insurance claims to produce the deterioration in operating profit. At £4.5m, this was 11.7% down on the previous year, representing a margin of 9.1% (last year 11.1%). The pre-tax profit was 9.8% lower at £4.6m for a margin of 9.2% (last year: 11%).