27th Apr 2016 10:47
LONDON (Alliance News) - Birmingham-based bus operator Rotala PLC on Wednesday posted lower annual pretax profit, hit by one-off items, as revenue declined marginally.
Rotala said pretax profit for the year to the end of November was GBP742,000, down from GBP1.5 million a year earlier. The profit was hit by the group booking a GBP1.7 million one-off cost related to mark-to-market provisions on derivative-based fuel hedges. Excluding this exceptional cost, pretax profit grew to GBP2.5 million from GBP2.3 million.
Revenue declined to GBP50.9 million from GBP51.7 million, as growth in commercial services revenue was offset by declining sales from its contracted and charter services arms.
Commercial sales were helped higher by the acquisition of Green Triangle Buses, Rotala noted, plus increases in revenue from the West Midlands and South West markets.
Contracted revenue fell primarily due to the end of Rotala's long-running contract with British Airways, which also caused the fall in charter services, its smallest division.
Rotala will not pay a final dividend for the year but did pay two interim dividends in the year, taking its total payout to 2.10 pence from 1.85p a year earlier.
Rotala said trading in the current financial year is in line with its expectations, and it will continue to pursue a policy of eschewing chasing business at lower margins.
Shares in Rotala were down 1.8% to 72.20 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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