9th Mar 2022 20:46
Rotala PLC - bus operations at Heathrow airport and in West Midlands and North West - Notes UK court ruling against its and peer Stagecoach Group PLC's judicial review claims into how a consultation on bus franchising in Manchester, England was conducted, saying it was "unlawful". Justice Julian Knowles ruled against the operators and dismissed the claim. Rotala says it still believes decisions to be "irrational and/or unlawful" and is in process of applying for permission to appeal the decision to the Court of Appeal.
"As an operator in Greater Manchester, the company has acted to attempt to protect its business from a decision that is not only detrimental to Rotala's future prospects, but also potentially detrimental to the citizens of Greater Manchester in imposing upon them the financial burden of a franchising scheme that the Board believes has not been properly assessed in line with the relevant legislation," it says.
However, notes that if it is unsuccessful in its legal case and the franchise plans are implemented, it may have to sell its Bolton depot and the bus assets based there to the Greater Manchester Combined Authority. The potential sale wouldn't affect its balance-sheet position, Rotala adds.
Current stock price: 23.80 pence, down 4.5%
12-month change: down 34%
By Arvind Bhunjun; [email protected]
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