2nd Mar 2015 10:07
LONDON (Alliance News) - Bus operator Rotala PLC Monday said it has acquired Green Triangle Buses Ltd for GBP900,000 in cash from Rolling Solutions Ltd, a move Rotala said will enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area.
GTB operates 43 vehicles from a long leasehold depot in Atherton, Manchester and employs about 100 staff. According to Rotala, the GTB depot is well placed within the local transport network and capable of handling expansion.
In addition to the cash acquisition price, Rotala said it also repaid approximately GBP368,000 to GTB's bankers to settle an outstanding overdraft. At the date of the acquisition GTB had net assets of some GBP466,000 including Hire Purchase debt of GBP233,000.
"On this basis the acquisition is expected to generate about GBP450,000 of positive goodwill," the company said in a statement.
Rotala said the GTB acquisition is not expected to have a "material impact" on earnings in the current financial year, but will be an earnings booster in future years. In the financial year to end-August 2014, GTB generated GBP3.9 million in revenue and a profit before tax and exceptional items of GBP107,000.
"The integration of operations and overheads is expected to have been fully implemented by the end of the current financial year," the company added.
Rotala shares were untraded Monday morning. The stock was last traded at 53.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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