4th Feb 2016 09:59
LONDON (Alliance News) - Birmingham-based bus operator Rotala PLC said Thursday its outlook for the current financial year looked positive, following acquisitions and fuel-hedging in its previous financial year.
The company, which operates bus, coach and other transportation services, said its strong performance in the year ended November 30 meant its revenue for 2016 should show a return to growth, with its 2015 pretax profits having been broadly in line with expectations.
The AIM-listed company said revenue was slightly reduced for 2015, but its operating cash flows were strong, and the three acquisitions made in the last ten months have strengthened its position in the north-west and the Heathrow area.
Two of the acquisitions were made in the financial year ended November. These were Manchester-based bus operator Green Triangle Buses Ltd and specialist coach hire company Wings Luxury Travel. Shortly after the financial year end, Rotala also acquired Heathrow business OFJ Connections Ltd, for GBP1.3 million.
It said its good geographical spread of businesses and activities offered protection against any renewed local authority control over bus services, a worry for the company.
Rotala also pointed to its decision to hedge as much of its fuel requirement as possible, to try to take advantage of lower oil prices, as a move to create more business certainty and reduce volatility.
For 2016, it has so far hedged 89% of its fuel requirement at an average price of 101.0p per litre. At the end of 2014, it had only hedged 84% of its requirement at a price of 102.0p.
Rotala said it will be paying a second interim dividend to its shareholders in respect of 2015, at a rate of 1.375 pence per share, on March 30. The total dividend for 2015 will therefore be 2.10p per share, up from 1.85p per share in 2014.
"The current financial year has begun positively. I anticipate further acquisition activity in the current year," said Chairman John Gunn.
Rotala shares were down 2.0% at 73.00 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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