Rotala PLC
26 September 2005
26 September 2005
Rotala plc
The board of Rotala plc ('Rotala' or the 'Company') announces an update on
matters relating to the recent acquisition by Rotala of the Flights Group and an
update on recent trading and operational developments.
Flights Group and Central Parking System of UK Limited ('CPS')
The Company's admission document dated 9 August 2005 described the businesses
acquired as part of the Flights Group. This document also identified that the
disentanglement of the Flights Companies from CPS might result in certain
logistical and other issues which could absorb management time and involve costs
and expenses being incurred by the Company.
In an announcement made very recently by the parent company of CPS, Central
Parking Corporation ('CPC'), in conjunction with a tender offer, CPC stated that
it had become aware of issues concerning certain related party transactions and
accounts receivables in its UK operations and that there might be a resultant
negative financial impact to CPC relating to these matters, which currently it
could not quantify.
Furthermore, the board of Rotala has been informed by CPC that these
investigations partly involve the seller of the Flights Group, Stuart Lawrenson.
Mr Lawrenson was Senior Vice President, Europe, of CPS until August 2005 and
became a non-executive director of Rotala upon completion of the acquisition of
the Flights Group on 30 August 2005.
To the extent (if at all) that Rotala suffers any material prejudice as a result
of matters arising out of any such investigation, it has notified Mr Lawrenson
that it has a number of potential warranty and indemnity claims under the
original acquisition agreements entered into with him, among others. It should
also be noted that the Company has the right to offset any such claims against
the loan note consideration and any deferred share consideration which might
otherwise have become payable.
Update on trading and operations
Further to the statements relating to the prospects and trends of the Flights
Group set out in the Company's Admission Document dated 9th August 2005, we are
pleased to confirm that turnover has continued to be increased both by organic
growth generated by existing contracts and by the addition of recent new
contract wins. The Board is mindful of the need to continue to improve vehicle
productivity and to enhance the utilisation of the solid operational base that
has been created. Naturally, the increase in fuel prices causes a problem in
common with other operators. The management is endeavouring to increase the use
of fuel price protection clauses across the Company's business base.
The Company also announces that Kim Taylor, the Finance Director, will take over
the post of Chief Executive Officer for the time being and that a search has
been commenced for a group chief operating officer. It is intended that a Group
Financial Controller will be appointed shortly. Stuart Lawrenson will remain as
a non-executive director of the Company for the time being.
Further announcements relating to the above matters will be made in due course.
For further information please contact:
Kim Taylor, Rotala 0207 236 6236
Nick Fox, M:Communications. 020 7153 1540
This information is provided by RNS
The company news service from the London Stock Exchange
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