30th Jul 2007 07:01
Rotala PLC30 July 2007 Rotala plc ("Rotala" or the "Company') Trading and Acquisition Update Trading Update The Board is pleased to announce that in recent weeks the main operatingsubsidiaries of the Company (together the "Group"), Flights Hallmark Limited andCentral Connect Limited, have been awarded a total of ten new contracts. On anannualised basis, these new contracts should generate, in aggregate, additionalrevenues of £1,705,000. The Board is particularly pleased to have obtained a further contract in theBristol area from the University of the West of England. Part of this contractwas formerly operated by South Gloucestershire Bus & Coach Company Limited ("SGBCC"), but the new contract is a considerable advance on this. The Group has been awarded two new services by Worcestershire County Council,one contract with a term of four years and the other with a term of three years,and several smaller contracts by local educational authorities in the WestMidlands. Also in the West Midlands, the Group has been awarded extra routes byTransco for staff transportation, to add to the existing work already undertakenfor this organisation. Finally, out of the Group's Heathrow depot, the Company has won a new contractfrom Qantas to transport its aircrew and GlaxoSmithKline has awarded the Companyan enhancement of the services it presently runs for it. Following on from the contract awards announced in February of this year, theseawards mark another significant step forward for Rotala in building itsoperations organically as well as by acquisition. The Board is delighted by thestrength of the flow of business this year and by its ability to win newcontracts; the Company remains on track to meet its full year expectations. Theaward of these new services emphasises the Company's commitment to increase itsturnover and to become a significant force in transport operations in its chosenlocations. John Gunn, Chairman of Rotala, commented "Our executive team is to becongratulated on achieving further contract successes. We look forward tocreating a significant transport company in the years to come, based on ouroriginal business model of well-targeted acquisitions taken together withfurther organic growth." Acquisitions Further to the announcement by the Company on 18 June 2007, Rotala is pleased toannounce that it has completed the acquisition of North Birmingham BuswaysLimited ("NBB") and the purchase of the first phase of contracts and assets fromSGBCC. NBB NBB is a bus company that operated 26 buses from a site in the Erdingtondistrict of Birmingham, some two miles from the Company's Long Acre depot. NBBis long established on a number of its routes and the majority of the workundertaken by NBB is commercial stage carriage. Approximately one third of itsrevenues derive from contracts with Centro, which is the operating name of theWest Midlands Passenger Transport Executive. The Directors believe that immediate cost savings can be made from a reductionin maintenance, accounting and administration overheads. Integration of theNBB's business into the existing business of the group has already begun. NBB'sfleet of buses moved to Long Acre over the past week-end. SGBCC In the first phase, the Group has taken a sub-contract of a contract withBristol City Council for the provision of four bus routes in Bristol until suchtime as this contract can be novated to it; it has acquired eleven vehicles toservice these routes and the existing University of West of England contractreferred to above. As set out in the final sale and purchase agreement with SGBCC, the Group, intotal, will acquire 64 buses for a price of £1.04 million. The right to operatethe routes that these buses run on will be acquired for a consideration of afurther £600,000. The acquisition of the buses and routes will be in a number oftranches but will be completed in full by 31 March 2008. The total considerationof £1.64 million will be apportioned to particular buses and routes oncompletion of the acquisition of these buses and routes and will be paid instages. An update on the ongoing acquisitions of the bus business of SGBCC and Ludlowsof Halesowen Limited will be announced by the Company in due course. Enquiries: Contacts: John Gunn, Chairman 020 7236 6236Kim Taylor, CEO 07918 883796David Seal / Rhod Cruwys, Blue Oar Securities Plc 020 7448 4400 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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