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Rotala PLC (ROL)

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Friday 08 January, 2016

Rotala PLC

Acquisition

RNS Number : 1823L
Rotala PLC
08 January 2016
 

8 January 2016

Rotala plc

("Rotala" or "the Company")

 

Acquisition at Heathrow  

 

Rotala is pleased to announce the acquisition from OFJ Connections Limited ("OFJ") of that part of OFJ's business which is conducted in and around Heathrow airport. The consideration for this acquisition is £1.3 million ("The Acquisition").

 

 As part of the Acquisition Rotala has acquired a vehicle fleet which has a fair value of £0.65 million, but has not assumed any other assets or liabilities of any materiality. On this basis the Acquisition is expected to generate about £0.65 million of positive goodwill on consolidation. The Acquisition is estimated to have revenues of approximately £5.5 million and is not initially expected to make a material contribution to the profits of Rotala. The Acquisition will, over time, be fully integrated with Rotala's existing business in the Heathrow area.    

 

The business acquired has a long-established presence in and around Heathrow. Its principal activity is the movement of crew for a large number of airlines from their aircraft to their hotels and other destinations, including Gatwick airport. Other work is carried out for local educational institutions and for a number of private clients. The Acquisition uses a 70 strong fleet of vehicles matched to the characteristics of this work. These vehicles, with key operating management and about 120 staff, will become part of Rotala's existing business structure at Heathrow Airport. 

 

The Acquisition will not have a material impact on earnings in the 2015/16 financial year. The integration of operations and overheads is expected to have been fully implemented by the end of that 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)


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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