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Rotala FY pretax profit marginally lower

By BFN News | 09:01 AM | Friday 25 April, 2014


Rotala's FY pretax profit dipped to £2.06m, from £2.08m. Revenue was £53.3m, from £54.8m. It proposed a final dividend of 1.05p a share, from 0.9p, taking the total up 14% to 1.60p a share. Non-executive chairman John Gunn said the acquisition of the Redditch and Kidderminster depots from First has expanded the commercial bus revenues of the group in line with stated strategy. "But, as I remarked last year, the bus industry is still going through a period of considerable change. The reduction of government financial support for transportation by bus over the last four years is a continuing issue," Gunn said in a statement. The government, whether at local or national level, has reduced the funding for subsidised services, reimbursements for concessionary fares and the levels of rebate available to bus operators on fuel taxes, he said. At the same time more onerous mandatory specifications for new buses continue to be introduced and are the cause of the increasing cost of new vehicles. "These policies, unless halted or reversed, will lead inevitably to a steep drop in the provision of bus services in many of the less populated areas of the country away from the major urban conurbations," Gunn said. "This is in turn putting a great deal of pressure on all bus service providers but particularly on the operators rather smaller than ourselves, who are finding continued existence a considerable struggle." At 9:01am: (LON:ROL) Rotala PLC share price was 0p at 50p Story provided by StockMarketWire.com

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