25th Apr 2014 12:12
LONDON (Alliance News) - Bus operator owner Rotala PLC reported a flat pretax profit and a dip in revenues for its last financial year, as the company said it is also taking legal action against coach operator National Express.
The AIM-listed company, which owns a number of bus, coach and transport management services companies, reported a flat pretax profit of GBP2.1 million for the year ended November 30, 2013, although raised its total dividend for the year by 14% to 1.60 pence.
Revenue for the year was GBP53.3 million, lower than the GBP54.8 million reported a year earlier, as revenues in its contracted services business overall fell by 8.5% to GBP20.6 million during the year. It said the decline was due to a loss of the two route diagrams it operated up until April last year for National Express Ltd, part of the National Express Group PLC.
"In our view National Express Ltd breached their contract with us by their actions. Therefore we have commenced legal proceedings against National Express Ltd to recover our losses. This case is expected to come to trial in the last quarter of 2014," the company said in a statement.
"In these accounts we have written off as an exceptional item GBP364,000 of our losses, which form part of our claim against National Express Ltd," it added.
Revenues in commercial services rose by 1.2% to GBP29.9 million during the period, boosted by contributions from the Redditch and Kidderminster depots, which it acquired from FirstGroup PLC last year.
In March last year, Rotala bought two freehold depots, one in Kidderminster and the other in Redditch, 36 vehicles, and various items of plant and equipment, from First Capital for a cash consideration of GBP1.6 million.
Revenues in charter services were flat for the year at GBP2.8 million, it said, as it continues to reduce its exposure to that area of business.
Rotala shares were own 1.9% at 49.08 pence per share Friday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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