Scottish bus builder Alexander Dennis said yesterday its prospects were being hampered by the uncertain conditions facing wider transport markets.
A spokesman for the Falkirk firm said most UK operators were seeing increased demand for bus and coach travel but remained hesitant about investing in their businesses because of falling revenue from rail activities.
He added that the lack of visibility over the economic climate next year meant fewer Alexander Dennis customers were looking to invest in their bus and coach fleets.
The bus builder has axed about 200 jobs this year, including 100 in Scotland, leaving it with a workforce of about 2,000.
Chief executive Colin Robertson has called on the UK Government to introduce a scrappage scheme for old buses and coaches similar to the initiative already up and running for cars.
He believes that in addition to helping to revive the economy, the move would take “old junkers” off the road and replace them with new, environment friendly models.
Hybrid vehicles made by Alexander Dennis recently completed 100,000 miles around London in a pilot scheme, which the firm says has had impressive results for carbon dioxide savings and fuel efficiency.
Mr Robertson believes more government support for the production of new technology vehicles could help to lift sales and – as a result – lower unit prices.
In its latest annual accounts, Alexander Dennis said it remained cautious about 2009 but optimistic about prospects over the longer term.
It said increasing environmental pressures, a greater emphasis on public transport and forthcoming changes to disability discrimination rules would create significant opportunities.
According to the 2008 report and accounts released by Companies House, pre-tax profits for 2008 came in at £3.2million, compared with £6.5million for the 15 months to December 31, 2007.
A straight year-on-year comparison saw sales rise by about 25% during 2008, to more than £306million as the firm benefited from a strong market through most of the period.
Mr Robertson said: “The addition of Plaxton also gave us the leading position in the UK for coach body registrations.”
The group acquired Plaxton Holdings in 2007 in a deal thought to be worth £40million, creating the UK’s largest bus and coach maker.
Last year’s highlights for the group included an appearance by one of its latest double-decker buses at the closing ceremony of the Olympic Games in China.