Rotala PLC
10 December 2007
Rotala plc
('Rotala' or the 'Company')
Year-end update
The Board is pleased to provide an update of the financial performance of the
Company and its main operating subsidiaries (together the 'Group') for the year
ended 30 November 2007.
Trading update for the financial year to 30 November 2007:
The board expects to announce the Company's results for the financial year ended
30 November 2007 at the end of February 2008. The board is pleased to report
that the results of the Company for the financial year to 30 November 2007 will
be in line with market expectations. The trading performance improved rapidly
from the middle of the year onwards and has moved into month by month
profitability at the end of the accounting period.
Trading performance:
The Company and its subsidiaries (together the 'Group') have won a substantial
number of additional contracts over the past twelve months, both from existing
and new clients, and in both the public and private sectors. Contract wins
announced to the market amount to additional revenue of approximately
£5.7million. The beneficial impact arising from these new contracts has been
felt only in part in the financial year ended 30 November 2007, with further
benefits to flow in the financial year ending 30 November 2008.
Furthermore the board is pleased to announce that in recent weeks the Company
has won £1,100,000 in new contracts together with an extra £960,000 of short
term work for an existing major customer which will have its effect in the first
half of 2008. Two other large customers have also shown their satisfaction with
the Group's services by recently renewing current contracts.
Acquisitions:
Rotala has successfully integrated the purchases of Zak's Bus & Coach Services
Limited, North Birmingham Busways Limited and the business of Birmingham Motor
Traction into the existing operations of the Group at the main Birmingham depot.
The step-by-step acquisition of the bus operations of the Bristol-based South
Gloucestershire Bus and Coach Company Limited is proceeding according to plan
and should be completed in the first quarter of 2008. Due diligence is
continuing on Ludlows of Halesowen Limited and a decision as to whether to
proceed with the acquisition will be taken in the first quarter of 2008. Further
acquisition targets are under review. These targets are situated in areas which
are contiguous to our existing locations, in accordance with the stated
objectives of achieving operating efficiencies and economies of scale by placing
operational hubs at suitable distances from each other.
Market conditions:
Transport policy at national and local government levels remain focused on
addressing the problems created by increasing congestion and pollution, as well
as fulfillment of social needs. Both central government and local authorities
are consequently taking steps to encourage the increased usage of buses rather
than cars. The new Transport Bill currently before Parliament gives powers to
local government which will promote the use of the bus in congested urban
environments. The board believes that this augurs well for Rotala's operations
in both Birmingham and Bristol. Transport policy initiatives at national level
also look likely to involve further public investment to the benefit of the
public transport industry as a whole.
Forthcoming year:
The 2007 financial year has been a year of substantial change for the Company.
As a result of a number of complementary acquisitions and a strong pipeline of
contract wins, the board expects the trends set out above to continue into the
current financial year. The board remains confident that the strategy which it
has devised has created a sound platform for good growth in the years to come,
both organically, through new customer and contract wins, and through
value-enhancing acquisitions.
Enquiries:
Contacts:
John Gunn, Chairman 020 7621 5770
Kim Taylor, CEO 020 7621 5770
Romil Patel / Rhod Cruwys, Blue Oar Securities Plc 020 7448 4400
This information is provided by RNS
The company news service from the London Stock Exchange
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