9th Jun 2016 15:08
LONDON (Alliance News) - Rotala PLC, which has a network of depots throughout the North West, Midlands, South West and at Heathrow Airport, on Thursday said it has raised GBP2.4 million from new and existing investors, in a placing of about 3.9 million shares priced at 62 pence each.
Shares in Rotala were down 2.4% at 62p on Thursday.
In a statement, the AIM-listed transport company said GBP800,000 will be invested in the enhancement of facilities at the Tividale and Redditch depots.
The investment is expected to generate "significant operational efficiencies and capacity for further top line growth", the company said.
The remaining cash raised is intended to fund bolt-on acquisitions around existing depots, Rotala said.
Chairman John Gunn said the proceeds will enable Rotala "to enhance its key depots in the West Midlands in preparation for the advantages that will flow to the company from the recently announced Buses Bill. The proceeds will also enable us to add to the footprint of our existing depot network by making judicious acquisitions which can be fitted easily into our existing operations."
Rotala said it continues to trade in line with management expectations.
By Samuel Agini; [email protected]; @samuelagini
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