Acquisition

RNS Number : 7271O

Rotala PLC

01 June 2015

 



1 June 2015

Rotala plc

("Rotala" or "the Company")

Acquisition at Heathrow Depot

Rotala is pleased to announce the acquisition from Wings Luxury Travel Limited ("Wings") of its whole business, the Wings brand and complete vehicle fleet for a cash consideration of £1.5 million ("The Acquisition"). The vehicle fleet has a fair value of £1.1 million. Rotala will not assume any other assets or liabilities of any materiality. On this basis the Acquisition is expected to generate about £0.4 million of positive goodwill on consolidation. In the year ended 30 November 2014, the Wings business had revenues of approximately £1.9 million and a profit before tax and exceptional items of £90,000.

Wings is a well-established operator of luxury coach services in the London area with an excellent business reputation. It uses a 17 strong fleet of highly-specified vehicles. These, with key operating management and about 20 staff, will transfer to Rotala's existing depot at Heathrow Airport. Following the recent end of the Company's long-standing contract with British Airways, there is ample capacity at this depot to absorb the Wings fleet and personnel.

The Acquisition will not have a material impact on earnings in the current financial year. The integration of operations and overheads is expected to have been fully implemented by the end of the year. Following these steps, the Acquisition is expected to have a beneficial effect on earnings in future years.

For further information please contact:

Rotala Plc
John Gunn, Chairman	020 7602 7500
Simon Dunn, Chief Executive	07825 808 525
Kim Taylor, Group Finance Director	07825 808 529
Numis Securities Limited	020 7260 1000
David Poutney (Corporate Broker); Stuart Skinner/Richard Thomas (Nominated Adviser)

 

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