Re Contract

RNS Number : 7263R

Rotala PLC

27 August 2010

 



Rotala plc

("Rotala" or the "Company" or the "Group")

 New Contracts and Other Service Enhancements

The Board is pleased to announce that the Group has recently been awarded a number of new contracts and additions to existing contracts by various customers.  The effect of these new contracts, in aggregate, is expected to be an increase in the annual revenues of Rotala of approximately £0.8 million.  This is in addition to the £1.9 million of new contracts announced on 8 April 2010.

Bristol and Bath area

The Company, through its wholly owned subsidiary Flights Hallmark Limited ("Flights"), has been re-awarded a contract by Bath & North East Somerset for the 20A/20C circular service in Bath. This contract, previously on a short term basis, has been extended to seven years to expire in August 2017. This new contract is expected to produce additional revenues (beyond those of the existing contract) of about £275,000 per annum for Rotala.

Birmingham area

In Birmingham, through its wholly owned subsidiary Central Connect Limited, Rotala has been awarded a number of new contracts by Centro, the government organisation responsible for transport policy and planning in the West Midlands region.

·      Under its distinctive "Signature" brand the Company has been awarded a 3 year contract to operate the S4 service in Solihull. These buses are to the latest environmentally-friendly engine standards and are equipped with leather seats and free Wi-Fi connection. The service is designed, by an improvement in quality, to encourage greater bus usage in this area of Solihull. At the same time the aim is to provide more direct and faster services to Solihull train station and town centre;

·      Also using its "Signature" brand the Company has been awarded a contract to run a number 82 service between Coventry and Solihull for a period of 3 years. This service also uses the latest Euro 5 standard low-emission engines, married to vehicles with leather seating, CCTV and free Wi-Fi. The service is designed to encourage increasing bus usage along the Solihull to Coventry route which runs through many villages in the Meriden Gap;

·      Centro has also awarded the Company a contract to run evening services on the 26A route from the City Centre to the north eastern outskirts, as a continuation to the timetable provided by the existing operator. This contract is for a period of 1 year.  

This series of contracts are expected to produce additional revenues of about £360,000 per annum for Rotala.

Worcester area

In the Worcester area, the Company, through its wholly-owned subsidiary The Diamond Bus Company Limited, has been re-awarded a series of contracts by Worcestershire County Council. These cover the services numbered 362,363 and 382 in the area between the city of Worcester and Pershore. These contracts are for a period of 5 years up to the end of May 2015.  These new contracts are expected to produce additional revenues (beyond those of the existing contracts) of about £150,000 per annum for Rotala.

 John Gunn, Chairman of Rotala, commented "Our management continues to achieve admirable growth in additional contract wins as well as sustaining the business through the re-award of existing contracts for lengthy contract terms. These successes reflect well on our management skills and the quality of service which we provide to our customers."

For further information please contact:

Rotala plc
John Gunn, Chairman	020 7602 7500
Simon Dunn, Chief Executive	0121-322-2222/
	07825-808525
Kim Taylor, Group Finance Director	0121-322-2222/
	07825-808529
Charles Stanley Securities - Nominated Adviser and Broker	020 7149 6000
Mark Taylor

 

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