Interim Results

Rotala PLC
30 August 2006



Press Release

30 August 2006



                                   Rotala plc
                          ('Rotala' or 'the Company')

          Unaudited Interim Results for the six months to 31 May 2006



Chairman's Statement



Results for the period

I am pleased to be able to present this interim report to shareholders in
respect of the six month period ended 31 May 2006.

  In the period the Board continued to focus on turning round the fortunes of
the Company both by the reduction of costs and cessation of unprofitable
activities inherited from the previous management of the business. These actions
included not only eliminating unnecessary expenditure but also discarding
unprofitable contracts and replacing it with profitable revenue from new
contracts. Since the acquisition of the Flights group of companies in August
2005, new and profitable revenues of more than £3.3 million per annum have more
than replaced the unprofitable revenues discarded of approximately £2.5 million.
Cost reductions achieved to date amount to more than £1.1 million per annum
(compared to the cost base at the time of the acquisition of the businesses) and
it is anticipated that plans already put in place will see this figure rise to
an annualised value of more than £2.5 million by the end of 2007. The initial
success of these measures is reflected in the recording of a gross profit for
the group of £746,119 in the period to 31 May 2006, compared to the gross loss
of £259,431 for the period to 30 November 2005. In view of the continuing
success of efforts to reduce costs and to add profitable turnover, the Directors
consider that the Company is moving steadily towards profitability in the medium
term.

Provision for leases

  The Board has undertaken a full review of the unsatisfactory and uneconomic
vehicle leasing arrangements which it inherited with the acquisition of the
Flights group.  Negotiations to terminate or vary these contracts have commenced
but no agreements have yet been reached. The acquired businesses continue to
incur underlying losses because of these contracts; the adverse economic effects
of these contracts will continue until they can be ended or re-negotiated. The
underlying losses, though declining, will continue in the current year and will
not finally be eradicated until 2007. These losses were provided for in the
group accounts for the period ended 30 November 2005 and they will not have an
impact on the profit and loss account  in subsequent years. However, until
negotiations are concluded, the existence of the contracts will continue to have
an adverse impact on the cash flow of the group.

Increase of share capital

  As a result of the increasing turnover of the Company, the continuing losses
and the diversion of effort caused by the problems inherited from the vendor of
the Flights group, the Directors considered that it was prudent to augment the
capital of the Company. The Board determined that new equity funding should be
raised to increase the Company's capital resources and a placing of £1,625,000
was completed in April 2006. One of the principal objectives of the placing was
also to raise funds to acquire the freehold of the Company's 4.5 acre depot in
Birmingham for £2 million. This step was successfully achieved. A commercial
mortgage of £1.5 million was obtained on the property to assist in financing the
acquisition. Now that the Company has secured a sizeable freehold base, it will
seek opportunities to increase substantially its operations in the Birmingham
area.

Prospects

  The Board remains of the view that the transport sector offers opportunities
for growth for the Company. The Directors believe that government policy on such
issues as congestion and pollution, combined with increasing customer demand for
the specialist transport solutions that the group can offer, create an expanding
marketplace for the group's services. Furthermore, the Board is still of the
opinion that the many small and marginal businesses in the sector offer great
opportunities to a consolidator such as Rotala. These two forces, increasing
demand and opportunities to act as a consolidator, offer attractive growth
prospects to the Company in the longer term; these were the original plans
behind the Company's foundation and the Board sees no reason to deviate from
this strategy. These plans do however require a strong operational and financial
base and the directors anticipate that additional finance will be raised shortly
to realise both these plans and to fund expected organic growth.

I am confident that we have created a sound infrastructure for the Flights
business since we acquired it and that, using the strategy I have outlined
above, we are well on the way to building a successful and profitable group.

John Gunn
Chairman

30 August, 2006



Contacts:
John Gunn                     020 7236 6236
Kim Taylor                    07918 883796


Notes to Editors:

The Company was admitted to trading on AIM on March 29 2005, having been
incorporated on January 21 2005 to invest in the transportation sector. In the
transport sector, the Board anticipated that opportunities would arise in the
provision of bus services, chauffeur-drive services, and integrated ground
transportation. In the Company's admission document dated March 11 2005 the
Board stated its intention to complete the Company's first acquisition within
six months of Admission and in August 2005 it agreed the acquisition of the
Flights Group of companies.

The Flights Group comprises three companies: Flights Hallmark, Flights Corporate
Transfers and FH Transport. Flights Hallmark is a mature coach and bus business
formed through the acquisition and amalgamation of a number of businesses. Its
main activities include the provision of dedicated transport solutions for a
range of corporate customers, the operation of various shuttle bus services and
a substantial coach hire business. Flights Corporate Transfers operates
chauffeur driven cars, particularly relating to transport to and from UK
airports, for a range of airlines and airline-related customers. The third
company, FH Transport, does not trade.

Consolidated profit and loss account
                                                 Notes  Six months ended     Period ended     Period ended
                                                        31 May 2006          31 May 2005      30 November 2005
                                                        (unaudited)          (unaudited)      (audited)
                                                        £                    £                £


Turnover                                                8,026,749            -                3,960,795
Cost of sales                                           (7,280,630)          -                (4,220,226)
                                                        __________                            __________
Gross  profit/(loss)                                    746,119              -                (259,431)

Administrative expenses                                 (1,821,308)          (43,499)         (931,258)
(Including goodwill amortisation of £259,285,
£nil and £115,086 respectively)
                                                        __________           _________        __________
Operating Loss                                          (1,075,189)          (43,499)         (1,190,689)

Interest receivable                                     1,284                27,538           67,429

 Interest payable                                       (45,208)             -                (25,223)
                                                        __________           _________        __________

Loss on ordinary activities before taxation             (1,119,113)          (15,961)         (1,148,483)
Tax on loss from ordinary activities                    -                    -                -
                                                        __________           _________        __________
Loss on ordinary activities after taxation              (1,119,113)          (15,961)         (1,148,483)
Retained loss brought forward                           (1,148,483)          -                -
                                                        __________           _________        __________
Accumulated loss carried forward                        (2,267,596)          (15,961)         (1,148,483)
                                                        __________           _________        __________
Loss per share - basic and diluted                 3    (0.54p)              (0.03p)          (1.33p)



Consolidated Balance Sheet
                                                 Notes  At 31 May 2006       At 31 May 2005   At 30 November
                                                        (unaudited)          (unaudited)      2005 (audited)
                                                        £                    £                £
Fixed assets
   Intangible assets                                    8,313,431            -                8,322,717
   Tangible assets                                      3,727,190            -                1,496,333
                                                        __________           _________        __________
                                                        12,040,621           -                9,819,050
Current assets
 Stocks                                                 118,274              -                141,690
   Debtors                                              2,464,942            314,241          3,752,080
   Cash at bank and in hand                             42,634               3,004,891        1,000,000
                                                        __________           _________        __________
                                                        2,625,850            3,319,132        4,893,770
Creditors: amounts falling due within one year          (3,308,995)          (25,388)         (5,160,631)
                                                        __________           _________        __________
Net current (liabilities)/assets                        (683,145)            3,293,744        (266,861)
                                                        __________           _________        __________
Total assets less current liabilities                   11,357,476           3,293,744        9,552,189

Creditors: amounts falling due after more than          (3,505,946)          -                (1,769,868)
one year
Provisions                                              (1,224,124)          -                (1,547,000)
                                                        __________           _________        __________
                                                        6,627,406            3,293,744        6,235,321
                                                        __________           _________        __________
Capital and reserves
   Called up share capital                              2,803,077            1,070,000        1,719,744
   Share Premium Account                                3,525,258            2,239,705        3,097,393
   Merger reserve                                       2,566,667            -                2,566,667
   Profit and loss account (deficit)                    (2,267,596)          (15,961)         (1,148,483)
                                                        __________           _________        __________
Shareholders' funds                                     6,627,406            3,293,744        6,235,321
                                                        __________           _________        __________


Consolidated cash flow statement
                                                 Notes  Six months ended     Period ended     Period ended  30
                                                        31st May 2006        31st May 2005    November 2005
                                                        (unaudited)          (unaudited)      (audited)
                                                        £                    £                £


Net cash outflow from operating activities         4    (1,113,100)          (329,662)        (3,095,171)


Returns on investments and servicing of finance
   Interest received                                    1,284                24,848           67,429
   Interest paid                                        (35,715)             -                (25,223)
                                                        __________           _________        __________
Net cash (outflow)/inflow from returns on               (34,431)             24,848           42,206
investments and servicing of finance
                                                        __________           _________        __________

Capital expenditure and financial investment
   Payment to acquire intangible fixed assets           (250,000)            -                -
   Payments to acquire tangible fixed assets            (2,072,271)          -                (57,607)
   Sale of  tangible fixed assets                       11,190               -                3,894
                                                        __________           _________        __________
Net cash outflow from capital expenditure               (2,311,081)          -                (53,713)
and financial investment
                                                        __________           _________        __________
Acquisitions

   Expenses incurred in making the acquisitions         -                    -                (603,835)
   Bank overdraft acquired with acquisitions            -                    -                (149,912)
                                                        __________           _________        __________
Cash outflow from acquisitions                          -                    -                (753,747)
                                                        __________           _________        __________
Cash outflow before use of liquid resources and         (3,458,612)          (304,814)        (3,860,425)
financing

Management of liquid resources
Decrease/(increase) in deposits with banks              1,000,000            (2,851,812)      (1,000,000)

Financing
   Issue of ordinary share capital                      1,625,000             3,470,000        4,660,001
   Issue costs                                          (113,801)             (160,295)        (309,530)
   Mortgage raised                                      1,500,000             -                -
                                                        __________           _________        __________
Cash inflow from financing                              3,011,199            3,309,705        4,350,471
                                                        __________           _________        __________
Increase/(Decrease) in cash for the period              552,587              153,079          (509,954)
                                                        __________           _________        __________


Notes to the unaudited interim statement for the period ended 31st May 2006

1           Basis of Preparation: The financial information for the period has
not been audited or reviewed.  Rotala plc acquired the Flights Group of
companies on 30 August 2005. The results for the period to 31 May 2005 therefore
represent those of the Company only for that period. The results for the period
ended 30 November 2005 include those of the Flights Group only for the three
months ended on that date.

2           Accounting policies: the accounting policies used in this statement
are the same as those which were used for the preparation of the audited
accounts for the period ended 30 November 2005.

3           Loss per share: loss per share has been calculated in a manner based
upon the weighted average number of shares in issue in the period of 208,283,884
(May 2005: 56,603,124; November 2005: 86,060,538). The share options outstanding
at the period ends were not dilutive.

4           Reconciliation of Operating Loss to Net Cash Outflow:

Reconciliation of Operating Loss to Net                        Six months    Period ended  Period ended
Cash Outflow from Operating Activities                         ended 31st    31st May 2005 30th November
                                                               May 2006                    2005

                                                               £             £             £
Operating Loss                                                 (1,075,189)   (43,499)      (1,190,689)
Amortisation of goodwill                                       259,286       -             115,086
Depreciation of tangible fixed assets                          74,854        -             132,618
Decrease/(increase) in debtors                                 1,287,138     (311,551)     (413,342)
(Decrease)/increase in creditors                               (1,362,515)   25,388        (1,603,491)
Decrease in stock                                              23,416        -             26,396
Loss/(profit) on disposal of fixed assets                      2,786         -             (516)
Movement on provisions                                         (322,876)     -             (161,233)
                                                               _________     _________     _________
Net Cash Outflow from Operating Activities                     (1,113,100)   (329,662)     (3,095,171)
                                                               _________     _________     _________


5           Additional Information: this Interim Report does not constitute
statutory accounts within the meaning of s.240 of the Companies Act 1985.
Accounts for the period ended 30 November 2005 have been audited and the
auditors' report thereon was unqualified. These accounts have been filed with
the Registrar of Companies.

6          Other: copies of this Interim Report can be obtained by request from
the company's registered office at 46, Cannon Street, London, EC4N 6JJ.




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