28th Jul 2023 14:29
(Alliance News) - Rotala PLC on Friday reported higher profit as its business continued to recover from Covid.
The Tividale, West Midlands-based bus operator said that in the six months to May 31, pretax profit grew to GBP865,000 from GBP4,000 a year prior. Revenue rose 35% to GBP52.6 million from GBP39.0 million. Cost of sales increased 35% to GBP45.3 million from GBP33.5 million.
Rotala said during the six months passenger volumes for the bus industry improved slightly to between 90% and 95%, compared to pre-Covid levels, from 85% to 90% during 2022.
Rotala kept its interim dividend unchanged at 0.5 pence per share.
Looking ahead, the company said it continues to trade in line with its current financial year. It added that its Manchester-based franchise will start in March 2024 under a five-year contract with annual revenue of around GBP1.5 million.
Chair John Gunn said: "We are working particularly closely with those local authorities with approved bus service improvement plans. These authorities are now able to use those plans to support bus services in the short term with a view to creating sustainable long term commercial services."
Rotala shares were flat at 43.20 pence each in London on Friday afternoon.
By Tom Budszus, Alliance News reporter
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