TIDMROL
RNS Number : 9773T
Rotala PLC
28 July 2022
28 July 2022
Rotala Plc
("Rotala", the "Company" or the "Group")
Interim Results
Rotala plc (AIM:ROL), a provider of transport solutions across
the UK, announces its unaudited interim results for the six months
to 31 May 2022.
Highlights
-- Passenger numbers recovering slowly but steadily
-- Profit after tax of GBP2.1m (2021: GBP0.8m)
-- Basic earnings per share of 4.17p (2021: 1.61p)
-- Interim dividend declared of 0.5p per share (2021: nil)
-- Net debt at 31 May 2022 of GBP44m (2021: GBP64m)
Simon Dunn, Chief Executive said: "During the COVID-19 pandemic,
we decided to focus on cash conservation and debt reduction with
the objective of emerging from the pandemic with a robust balance
sheet, fit for renewed commercial operation. We believe that we
have achieved these objectives.
"As the bus industry recovers from the effects of COVID-19, bus
networks are being reviewed and rationalised and this is causing a
good deal of turbulence in the industry which should bring a
continuing flow of acquisition opportunities to Rotala, much like
the acquisitions made in the first half of FY 2022. We are well
placed to take advantage of these opportunities as they arise.
"
For further information please contact:
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Kim Taylor, Group Finance Director
Shore Capital 020 7408 4090
Tom Griffiths/James Thomas (Corporate Advisory)
Henry Willcocks (Corporate Broking)
Chairman's Statement
I am pleased to be able to make this report to the shareholders
of Rotala Plc in respect of trading for the six months ended 31 May
2022.
After a period of two years in which bus operation and service
levels had been to a great extent determined by the objectives of
the Department for Transport ("DfT") and local authorities, in the
first half of the current financial year, ending 30 November 2022
("FY 2022"), bus operations returned to more or less normal, though
still underpinned by grants and subsidies provided by the DfT and
local authorities.
Government support
The DfT's Bus Recovery Grant ("BRG") scheme, which was
originally due to expire in early April 2022, covers the period up
to October 2022. However, at the same time, concessionary fares
re-imbursement levels, which are controlled by local authorities,
are being gradually adjusted to reflect actual travel patterns such
that by the end of calendar 2022 the re-imbursements received will
represent actual concessionary passenger usage. Thus, broadly, DfT
and local authority support is being tapered as passenger numbers
slowly recover from the impact of COVID-19.
Passenger numbers
At 30 November 2021, the end of the Company's most recent
financial year, passenger numbers overall were ranging between 80%
and 85% of pre- COVID-19 levels. In FY 2022, they have continued to
grow slowly but steadily towards the upper end of that range. In
some areas, sharper rises in activity levels have been observed:
for example, usage of the "Hoppa" services around Heathrow Airport
has increased considerably since the start of the calendar year in
response to much improved volumes of airline travel. However,
recent industry reports have made it clear that, unlike rail, where
the issue is the reduction in commuter traffic, it is in the
concessionary card holder segment of bus passengers (largely
pensioners) where passenger levels have not yet recovered to
pre-pandemic levels. This reluctance to travel seems to have its
root in an aversion to the risk of exposure to current variants of
COVID-19. Full recovery in bus passenger numbers will therefore
depend on concessionary card holders regaining their former
confidence in travelling by bus. Reflecting these underlying
trends, the Board expects passenger numbers to continue to grow
slowly but steadily for the remainder of FY 2022, but not to
recover fully to pre-pandemic levels until 2023.
Revenues
GBPm Six months Six months Six months Year ended
ended 31 ended 30 ended 31 30 November
May 2022 November May 2021 2021
2021
Commercial 24.7 19.3 12.4 31.7
Contracted 9.0 8.8 7.4 16.2
Charter 0.5 0.2 0.5 0.7
Grants and subsidies 4.8 20.9 27.0 47.9
----------- ----------- ----------- -------------
Total 39.0 49.2 47.3 96.5
----------- ----------- ----------- -------------
The factors set out above are the key drivers of total revenues
in the above table. As grants and subsidies from the various arms
of the Government have tapered as passenger numbers recovered and
bus service levels ceased to be mandated by the Government, so
total revenues have fallen back. It can be seen that the peak of
Government support for the bus industry was reached in the first
half of 2021 and that it then fell slowly in the second half of
that year, but has declined substantially in the first half of FY
2022. At the same time, as the various COVID restrictions were
lifted, commercial revenue has recovered strongly. Contracted
revenue, largely derived from tendered bus contracts operated for
local authorities, was much less sensitive to COVID restrictions,
but has shown some recent growth. Charter revenue, which is ad hoc
by nature, is always highly variable.
Profits
GBPm Six months Six months Year ended
ended 31 ended 31 30 November
May 2022 May 2021 2021
Profit/(loss) before tax before
exceptional items 0.0 (0.1) (1.3)
Profit before tax after exceptional
items (see note 3) 3.0 1.1 0.3
One of the key requirements of Government support, which was
prevalent throughout most of FY 2021, was that a bus company
should, in return for the package of grants and subsidies, make
neither a profit nor a loss at the normalised pre-tax profit line.
This is not a requirement of the current BRG regime, but, at the
moment, the key factor in returning to profitability is the return
of passenger numbers to their pre-COVID levels. As set out above,
the Board does not expect this to happen until FY 2023 and so the
results for the first six months of FY 2022 were in line with
budget and the Board's expectations.
Profit before tax after exceptional items fluctuates principally
as a result of the marking to market of the Group's fuel derivative
position (profit of GBP2.4m in 2022 and GBP1.2m in 2021). Note 3 to
this statement contains a full analysis of the make up of
exceptional items. In addition, in this reporting period, a profit
of GBP0.6 million was recorded on the sale of a surplus leasehold
property.
It is worth noting that the way that the fuel derivative is
accounted for anticipates profits (and losses as in FY 2020) but
serves to protect pre-tax profits for the year as a whole from any
further increase in fuel prices.
Working capital and debt
Working capital (GBPm) At 31 May At 31 May At 30 November
2022 2021 2021
Inventories 1.2 2.5 1.1
Trade and other receivables 10.1 20.5 21.8
Trade and other payables 7.4 5.7 6.2
---------- ---------- ---------------
Total working capital 3.9 17.3 16.7
---------- ---------- ---------------
The Group's trade and other receivables were inflated during
2021, as they had been the previous year, by the amounts receivable
from the DfT under BRG and its predecessor programmes. During the
first half of FY 2022, the reconciliation processes governing the
release of these grants were completed. The receipt of the grants
in cash facilitated the substantial reduction in working capital
which can be seen in the above table, given that the other
components of working capital remained within their normal
ranges.
Net debt (GBPm) At 31 May At 31 May At 30 November
2022 2021 2021
Revolving commercial facility
drawn 1.3 14.7 7.6
Mortgage debt 5.6 6.1 5.9
Overdraft (net of cash) 0.0 2.5 3.2
---------- ---------- ---------------
Total net debt 6.9 23.3 16.7
---------- ---------- ---------------
The release of working capital in the first half of FY 2022
occasioned by the receipt of the grants and subsidies described
above enabled the Group to significantly reduce its drawings on its
revolving commercial facility ("RCF"). In March 2022, the Company
also announced that it had signed new banking facilities with its
principal bankers, HSBC Bank plc; these facilities include an RCF
of up to GBP17 million, of which only GBP1.3 million was drawn as
at 31 May 2022. This leaves ample resources to fund future organic
growth and acquisitions.
The release of working capital should ensure that net debt
(including hire purchase debt, details of which are set out in the
table below) is under GBP40 million by 30 November 2022, in line
with the Board's plans and expectations. This target would need to
be modified if any further acquisitions were made by the Company in
the second half of FY 2022, but this is the only circumstance which
would occasion such a modification.
Hire purchase debt and fleet management
GBPm At 31 May At 31 May At 30 November
2022 2021 2021
Hire purchase debt 36.3 39.1 39.9
Average fleet age 7.52 years 7.59 years 7.56 years
As stated at the time of the publication of the FY 2021 results,
the Board did not foresee any requirement, unless for specific new
business, for new vehicles in FY 2022. Capital expenditure in the
first half of FY 2022 therefore totalled only GBP451,000 and was
mostly covered by asset disposals, including that of the surplus
leasehold property. No new hire purchase finance was taken out in
the period. Therefore, the Board is confident that its forecast
that hire purchase debt will be approximately GBP34 million by 30
November 2022 will be met.
The continuing disposal of older vehicles ensured that the
average fleet age remained closely comparable to previous
periods.
Dividend
In April 2022, the Company, as it resumed dividend payments post
the pandemic, paid a special interim dividend of 1.0p per share. At
the same time, the Board stated its intention to return to its
former policy of maintaining 2.5 times earnings cover for any
future dividend payments. While dividends will therefore now
reflect the Group's current profitability, the Board will adopt a
progressive dividend policy, as before the onset of the COVID-19
crisis, recognising the importance of dividend flows to
shareholders. The Board therefore has declared an interim dividend
of 0.5p per share which will be paid on 9 September 2022 to
shareholders on the register on 19 August 2022 .
It is anticipated that future dividends will be paid in the
pattern of September (interim) and June (final), in the proportion
of one third at the interim dividend stage and two thirds for the
final.
Share Buy Back programme
On 23 March 2022 the Company announced that it would commence a
Share Buy Back programme in accordance with the AGM resolution then
in force. This resolution was renewed at the AGM held on 19 May
2022. So far under this programme the Company has acquired 921,316
ordinary shares at a total cost of GBP273,000. In accordance with
accounting standards, the cost of shares acquired in this manner is
written off to reserves. A total of 1,721,316 shares is now held in
treasury.
Acquisitions and DfT Policy
In the period under review the Company made two small
acquisitions in the West Midlands. The first was the bus business
of Claribel Coaches Limited ("Claribel") which completed on 22
April 2022. Claribel is a bus operator, in the eastern part of
Birmingham. Through its Diamond Bus subsidiary, Rotala acquired the
business and 18 vehicles for a total cash consideration of
GBP339,000. The Group did not assume any liabilities. On
completion, the acquired business was immediately transferred to,
and integrated within, the Group's existing depot infrastructure in
the West Midlands. No goodwill arose on the transaction.
The second occurred on 29 May 2022, when the Group completed,
through its Diamond Bus subsidiary, its acquisition of the bus
business of J ohnsons (Henley) Limited ("Johnsons"), together with
20 vehicles, for a total cash consideration of GBP936,000. Johnsons
is a well-established operator of commercial and contracted bus
services in Warwickshire and the southern West Midlands. The Group
did not assume any liabilities. Since acquisition, the acquired
business has been suitably rationalised and integrated within, the
Group's existing depot infrastructure in the West Midlands. No
goodwill arose on the transaction.
The DfT recently announced awards under its Bus Service
Improvement Plan ("BSIP") scheme, which is part of the Government's
National Bus Strategy. A number of the local authorities in which
the Group operates were awarded funds under this scheme, including
Greater Manchester, the West Midlands and Lancashire. The next
stage is that the local authorities concerned must develop, with
the support of bus operators, detailed schemes for further
submission to the DfT. While the effect of these awards on Rotala's
businesses cannot yet be known in detail, the overall position is
clearly positive.
Franchising in Greater Manchester
On 26 March 2021, the Company announced that the Mayor of
Greater Manchester (the "Mayor") had made the formal decision to
franchise the bus market in the Greater Manchester region. The
Company made an immediate claim to the High Court of Manchester to
judicially review a number of aspects of the consultation process
carried out by the Greater Manchester Combined Authority ("GMCA"')
which led to the decision of the Mayor to franchise the bus
network.
On 9 March 2022, Mr Justice Julian Knowles rejected these
arguments, dismissed the claim and refused to give leave to appeal.
The Company applied to seek permission to appeal the decision to
the Court of Appeal and was granted leave to appeal. The appeal
hearing took place on 12 July 2022. The Court of Appeal released
its judgement on 25 July 2022: it dismissed the Company's appeal.
The Company has considered the Court of Appeal's judgment in its
claim against GMCA and the Mayor and, whilst disappointed with the
result, it respects the decision of the Court and has resolved to
take no further steps in this legal process.
GMCA has already announced mechanisms which cover the
acquisition of bus depots and bus fleets under its franchising
proposals. The Board has reviewed these mechanisms and is confident
that, should it decide to place the Bolton depot and its associated
bus fleet assets under these mechanisms, the values which would be
realised from the sale of the Bolton depot and its related bus
fleet should meet or exceed their respective book values. These
amounts should also be more than sufficient to pay off the existing
mortgage on the Bolton depot and the hire purchase debt associated
with the bus assets based there. As a result, the sale of these
assets to GMCA, should it take place, would have no negative effect
on the Group's balance sheet and its leverage would fall to very
low levels. The capital which the Group currently has invested in
its Bolton operation would therefore be realised into cash and be
available for re-investment or redeployment elsewhere in the
Group.
Fuel hedging
Fuel represents about 12% of total costs and approximately 54%
of the Group's fuel requirement for the remainder of 2022 is
covered by hedging contracts, at an average price of 82p per litre.
These prices should be compared to the current spot price for
diesel (excluding VAT) of 140p per litre.
The Board will continue to monitor market conditions closely and
take out such further fuel hedges as it deems are appropriate to
meet its objective of reducing volatility in its costs and creating
business certainty.
Financial review
Income statement
The Consolidated Income Statement is set out below. The factors
governing the levels of revenue have been dealt with earlier in
this statement in the section on total revenue. As normal
commercial operation has returned, costs of sales have also fallen
in line with total revenues and the gross profit margin has
remained stable at approximately 14%. Administrative expenses rose
during the pandemic because of the extra requirements covering such
items as general legal and professional advice, health &
safety, risk assessment, recording and logging systems for COVID-19
purposes, medical advice and staff training, but as these demands
have receded so administrative expenses have returned to the levels
experienced before the COVID-19 pandemic struck. Profit from
operations (setting aside exceptional items) has remained a similar
proportion of total revenue as in the prior period and year, but
finance expense has fallen as the Group's total net debt has fallen
for the reasons explained above in the section on net debt. Thus,
at the normalised profit before tax line, the Group broke even in
line with budget and the Board's expectations. Profit before tax
(including exceptional items) rose considerably when compared to
the prior period for reasons which have already been stated above
in the section on profits. Note 3 to this statement sets out a full
analysis of exceptional items.
The rate of taxation is higher than expected in the period ended
31 May 2022 because, in anticipation of the rise in the basic rate
of corporation tax in April 2023 from 19% to 25%, a charge of
GBP500,000 has been taken to cover those deferred tax items which
are expected to reverse after the date of the change in the
corporation tax rate.
As a result of all the factors set out above, basic earnings per
share for the six months ended 31 May 2022, after all exceptional
items, were 4.17p (2021: 1.61p).
Balance sheet
The gross assets of the Group as at 31 May 2022 declined to
GBP91.1 million (2021: GBP104.4 million). This resulted to a degree
from a fall in the book values of property, plant and equipment
(which are fully analysed in note 6) as depreciation exceeded new
additions. But the principal factor was the decline in trade and
other receivables, the reason for which is set out above in the
section on working capital. These reductions were offset to some
extent by the rise in the value of the Group's fuel derivative at
31 May 2022, driven as it was by the fuel price at that date.
Current liabilities fell principally because of the reduction in
loans and borrowings, the reasons for which have been set out above
in the section on net debt. The full analysis of loans and
borrowings at period ends is set out in note 7 below. Total
obligations under hire purchase contracts fell as repayments were
made but no new contracts were taken out. Note 9 contains a full
analysis of the profile of hire purchase obligations. Non-current
liabilities were little changed from those seen at the end of 2021
and/or the prior period.
The result of the movements outlined above, combined with the
profit after tax of GBP2.1 million (2021: GBP0.8 million) was that
the net assets of the Group grew somewhat to GBP34.1 million (2021:
GBP31.5 million).
Cash flow statement
Cash flows from operating activities (before changes in working
capital and provisions) fell when compared to 2021 to GBP7.7
million (2021: GBP9.6 million). The principal reason for this was a
fall in depreciation, offset by higher profitability. Cash flows
from changes in working capital and provisions increased markedly
as working capital was released for the reasons set out above in
the relevant section on this item. Cash generated from operations
therefore reached GBP17.2 million for the period (2021: GBP7.8
million). Interest paid on lease liabilities fell slightly as no
new hire purchase contracts were entered into. Purchases of
property, plant and equipment, at GBP0.45 million, were lower than
the prior period (GBP0.96 million) and consisted in the main in
vehicles for new business. The cash outflow for the acquisition of
businesses was in respect of the Claribel and Johnsons businesses
described earlier in this statement.
Within financing activities, the Company paid a special interim
dividend in April 2022 and commenced its share buy back programme
as previously announced. Repayment of bank borrowings includes a
net reduction of GBP6.3 million in the Group's drawings on its
Revolving Commercial Facility. Bank interest fell as bank
borrowings fell.
Thus, given cash flows from operating activities of GBP16.4
million, GBP1.8 million of cash used in investing activities, and
cash used in financing activities of GBP11.4 million, there was an
overall increase in cash of GBP3.2 million in the period (2021:
increase of GBP0.8 million). In summary, the net cash position of
the Group stood at GBP30,000 at 31 May 2022, compared to
liabilities of GBP2.5 million at 31 May 2021 and GBP3.2 million at
30 November 2021.
Outlook
The Group continues to trade in line with budget for FY 22. The
Board's base assumption for the year is that the slow upward trend
in passenger numbers described above will continue and that full
recovery will not take place until FY 2023.
The Group has at present no hedging cover in place for FY2023.
However, recognising that fuel prices may rise further, but also
bearing in mind that fuel represents only some 12% of the total
costs of operation, the Board has been taking active steps to
re-align bus service operations so that it remains sustainable in
any future period of still higher fuel prices. This has been
effected through such actions as disposing of vehicles with
unacceptable fuel consumption and planning fare increases where
necessary.
During the COVID-19 pandemic, the Board decided to focus on cash
conservation and debt reduction with the objective of emerging from
the pandemic with a robust balance sheet, fit for renewed
commercial operation. The Board believes that these objectives have
been successfully achieved. The continued large-scale investment by
the Government under the banner of its National Bus Strategy is
also positive for the industry in the medium term. The acquisition,
actual and prospective, of two of the UK's largest bus groups
(Stagecoach Group plc and The Go Ahead Group plc) by new groups of
investors is also, the Board believes, an important statement about
the positive direction of the bus industry as a whole.
The bus industry is now in a prolonged post-pandemic recovery
phase which is likely to involve the general overhaul of bus
networks and rationalisation amongst bus operators. This will
undoubtedly produce continued turbulence in the bus industry which
should bring a healthy flow of opportunities to Rotala, much like
the acquisitions made in the first half of FY 2022, for both
organic growth and acquisitions. For all these reasons, I am
therefore very confident about Rotala's prospects.
John Gunn
Non-Executive Chairman
Date: 27 July 2022
Condensed consolidated Note Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
income statement 6 months 6 months 6 months 6 months 6 months 6 months
ended 31 ended ended 31 ended 31 ended ended 31
May 2022 31 May May 2022 May 2021 31 May May 2021
2022 2021
Results Exceptional Results Results Exceptional Results
before items for the before items for the
exceptional period exceptional period
items items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2 38,973 - 38,973 47,281 - 47,281
Cost of sales (33,466) - (33,466) (40,410) - (40,410)
Gross profit 5,507 - 5,507 6,871 - 6,871
Administrative
expenses (4,367) 3,002 (1,365) (5,476) 1,230 (4,246)
Profit from operations 1,140 3,002 4,142 1,395 1,230 2,625
Finance expense (1,136) - (1,136) (1,518) - (1,518)
------------- ------------ ---------- ------------- ------------ ----------
Profit/(loss)
before taxation 3 4 3,002 3,006 (123) 1,230 1,107
Tax (expense)/credit 4 (1) (924) (925) (66) (234) (300)
Profit for the
period attributable
to the equity
holders of the
parent 3 2,078 2,081 (189) 996 807
Earnings per
share for profit
attributable
to the equity
holders of the
parent for the
period:
Basic (pence) 5 0.01 4.17 (0.38) 1.61
Diluted (pence) 5 0.01 4.17 (0.38) 1.61
Condensed consolidated Note Audited Audited Audited
income statement Year ended Year ended Year ended
30 November 30 November 30 November
2021 2021 2021
Results Exceptional Results
before items for the
exceptional year
items
GBP'000 GBP'000 GBP'000
Revenue 2 96,543 - 96,543
Cost of sales (82,429) - (82,429)
Gross profit 14,114 - 14,114
Administrative expenses (12,334) 1,592 (10,742)
---------------------- ------------- ---------------
Profit from operations 3 1,780 1,592 3,372
Finance income 19 - 19
Finance expense (3,096) - (3,096)
(Loss)/profit before
taxation (1,297) 1,592 295
Tax credit 247 (476) (229)
---------------------- ------------- ---------------
Loss for the year
attributable
to the equity holders of
the parent (1,050) 1,116 66
Earnings per share for
loss
attributable to the equity
holders of the parent
during
the year:
Basic (pence) 5 (2.10) 0.13
---------------------- ------------- ---------------
Diluted (pence) 5 (2.10) 0.13
---------------------- ------------- ---------------
Condensed consolidated statement Note Unaudited Unaudited Audited
of comprehensive income 6 months ended 6 months Year ended
31 May 2022 ended 31 30 November
May 2021 2021
GBP'000 GBP'000 GBP'000
Profit for the period 2,081 807 66
---------------- ---------- -------------
Other comprehensive income/(expense):
Actuarial gain on defined
benefit pension scheme - - 2,821
Deferred tax on actuarial
gains on defined benefit
pension scheme 4 (250) - (536)
----------------
Other comprehensive (expense)/income
for the period (net of tax) (250) - 2,285
Total comprehensive income
for the period attributable
to the equity holders of
the parent 1,831 807 2,351
================ ========== =============
Condensed consolidated Notes Unaudited Unaudited Audited
statement of financial As at 31 As at 31 As at 30
position May 2022 May 2021 November 2021
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and
equipment 6 58,038 63,994 61,091
Defined benefit pension
asset 4,253 1,441 4,253
Goodwill and other intangible
assets 14,907 14,907 14,907
_____ _____ _____
Total non-current assets 77,198 80,342 80,251
Current assets
Inventories 1,184 2,491 1,090
Trade and other receivables 10,067 20,544 21,796
Derivative financial
instruments 2,308 644 958
Cash and cash equivalents 365 346 442
_____ _____ _____
Total current assets 13,924 24,025 24,286
_____ _____ _____
Total assets 91,122 104,367 104.537
Liabilities
Current liabilities
Trade and other payables (7,395) (5,731) (6,217)
Loans and borrowings 7 (2,027) (17,884) (11,615)
Lease liabilities 8 (7,187) (7,697) (7,319)
Derivative financial - (103) -
instruments
______ ______ _____
Total current liabilities (16,609) (31,415) (25,151)
Non-current liabilities
Loans and borrowings 7 (5,233) (5,651) (5,445)
Lease liabilities 8 (29,899) (33,534) (34,485)
Provision for liabilities (1,202) (374) (3,414)
Deferred income (525) - (640)
Net deferred taxation (3,552) (1,912) (2,377)
______ ______ ______
Total non-current liabilities (40,411) (41,471) (46,361)
______ ______ ______
Total liabilities (57,020) (72,886) (71,512)
_____ _____ _____
Net assets 34,102 31,481 33,025
====== ====== =====
Condensed consolidated Unaudited Unaudited Audited
statement of financial As at 31 As at 31 As at 30
position May 2022 May 2021 November 2021
GBP'000 GBP'000 GBP'000
Equity attributable
to equity holders
of parent
Called up share capital 12,731 12,731 12,731
Share premium reserve 12,369 12,369 12,369
Merger reserve 2,567 2,567 2,567
Shares in treasury (1,069) (806) (806)
Retained earnings 7,504 4,620 6,164
______ ______ _____
Total equity 34,102 31,481 33,025
===== ===== ====
Condensed consolidated Called Share Merger Shares Retained Total
Statement of Changes up share premium reserve in treasury earnings
in Equity capital account
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 December 2020 12,731 12,369 2,567 (806) 3,813 30,674
---------- --------- --------- ------------- ---------- ------------
Profit for the period - - - - 807 807
Other comprehensive - - - - - -
income
Total comprehensive
income - - - - 807 807
Transactions with
owners:
Dividends paid - - - - - -
Transactions with - - - - - -
owners
At 31 May 2021 12,731 12,369 2,567 (806) 4,620 31,481
Loss for the period - - - - (741) (741)
Other comprehensive
income - - - - 2,285 2,285
Total comprehensive
income - - - - 1,544 1,544
Transactions with
owners:
Dividends paid - - - - - -
Transactions with - - - - - -
owners
At 30 November 2021 12,731 12,369 2,567 (806) 6,164 33,025
---------- --------- --------- ------------- ---------- ------------
Profit for the period - - - - 2,081 2,081
Other comprehensive
expense - - - - (250) (250)
Total comprehensive
income - - - - 1,831 1,831
Transactions with
owners:
Share based payment - - - 10 5 15
Purchase of own
shares - - - (273) - (273)
Dividends paid - - - - (496) (496)
Transactions with
owners - - - (263) (491) (754)
At 31 May 2022 12,731 12,369 2,567 (1,069) 7,504 34,102
Condensed consolidated cash Unaudited Unaudited Audited
flow statement 6 months 6 months Year ended
ended 31 May ended 31 May 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period before
tax 3,006 1,107 295
Finance expense (net) 1,136 1,518 3,077
Depreciation 4,235 6,946 14,906
(Gain)/loss on sale of property,
plant and equipment (620) - 3
Acquisition expenses 37 - -
Amortisation of grants received (115) (50)
Share based payment 15 - -
Notional expense of defined
benefit pension scheme - - 28
____ ____ ____
Cash flows from operating
activities before changes
in working capital and provisions 7,694 9,571 18,259
Decrease/(increase) in trade
and other receivables 12,078 1,755 503
(Decrease)/increase in trade
and other payables 1,115 (2,678) (2,232)
Decrease/(increase) in inventories (94) 998 2,398
Movement on deferred income
and provisions (2,211) (205) 2,834
Movement on derivative financial
instruments (1,350) (1,642) (2,060)
____ ____ ____
9,538 (1,772) 1,443
____ ____ ____
Cash generated from operations 17,232 7,799 19,702
Interest paid on lease liabilities (868) (957) (1,920)
____ ____ ____
Net cash flows from operating
activities 16,364 6,842 17,782
Condensed consolidated cash Unaudited Unaudited Audited
flow statement 6 months 6 months Year ended
ended 31 May ended 31 May 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Cash flows from investing
activities
Purchases of property, plant
and equipment (451) (958) (1,883)
Grants received thereon - - 690
Sale of property, plant and
equipment 47 776 1,268
Acquisition of businesses (1,391) - -
_____ _____ _____
Net cash flows (used in)/derived
from investing activities (1,795) (182) 75
Cash flow from financing
activities
Dividends paid (496) - -
Purchase of own shares (273) - -
Repayment of bank and other
borrowings (6,531) (1,706) (8,987)
Bank interest paid (263) (550) (1,124)
Capital settlement payments
on vehicles sold (213) (318) (719)
Capital paid on lease liabilities (3,602) (3,293) (6,943)
_____ _____ ____
Net cash used in financing
activities (11,378) (5,867) (17,773)
Net increase /(decrease) in
cash and cash equivalents 3,191 793 84
Cash and cash equivalents
at start of period (3,161) (3,245) (3,245)
_____ _____ _____
Cash and cash equivalents
at end of period 30 (2,452) (3,161)
====== ===== ====
Notes to the Unaudited condensed Consolidated Interim Financial
Statements for the six months ended 31 May 2022
1. Basis of preparation:
The unaudited condensed consolidated interim financial
statements for the six months ended 31 May 2022 have been prepared
using the accounting policies set out in the Group's 2021 statutory
financial statements.
The financial statements of the Group for the full year are
prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and
these interim financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting". The interim financial
statements have been prepared on a going concern basis.
2. Turnover:
Revenue represents sales to external customers excluding value
added tax. All of the activities of the Group are conducted in the
United Kingdom within the operating segment of provision of bus
services. Management monitors revenue across the following business
streams: contracted services, commercial services and charter
services.
Unaudited
Unaudited Six months Unaudited Audited
Six months ended Six months Year ended
ended 31 30 November ended 31 30 November
May 2022 2021 May 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
Commercial 24,708 19,301 12,383 31,684
Contracted 8,947 8,779 7,400 16,179
Charter 532 259 475 734
Grants and subsidies 4,786 20,923 27,023 47,946
Total 38,973 49,262 47,281 96,543
============ ============= ============ =============
As set out in the Chairman's Statement, the Group has been the
beneficiary of extensive support from the Department for Transport
and local authorities.
3. Profit before taxation:
Profit before taxation includes the following items which the
directors consider to be outside of the normal trading transactions
of the Group and are therefore to be regarded as exceptional in
nature:
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 31 ended 31 30 November
May 2022 May 2021 2021
GBP'000 GBP'000 GBP'000
Mark to market profit
on fuel derivatives 2,442 1,230 1,779
Profit on sale of leasehold 602 - -
property (note 6)
Acquisition expenses (37) - -
Loss resulting from Heathrow
depot fire - - (187)
Share based payment (5) - -
Profit within profit
before taxation 3,002 1,230 1,592
========== ========== =============
4. Taxation:
The main rate of corporation tax will increase from 19% to 25%
from April 2023. The tax charge in the condensed consolidated
income statement for the period ended 31 May 2022 has therefore
been increased by GBP500,000 to reflect the estimated effect of the
reversal of deferred tax items after April 2023.
For the same reason, the deferred tax liability arising on the
gross pension scheme asset has been increased by GBP250,000 and
this charge has been reflected in the condensed consolidated
statement of comprehensive income.
5. Earnings per share:
Basic earnings per share have been calculated on the basis of
profit after taxation and the weighted average number of shares in
issue for the period of 49,947,223 (31 May 2021: 50,091,109; 30
November 2021: 50,091,109). Diluted earnings per share have been
calculated on the basis of profit after taxation and the weighted
average number of shares in issue (including such potential issues
as are dilutive) for the period of 49,947,223 (31 May 2021:
50,091,109; 30 November 2021: 50,091,109).
Basic adjusted and diluted adjusted earnings per share before
exceptional items have been calculated using the same weighted
average numbers of shares in issue, but on the basis of profits
after tax and before any exceptional items. This is done in order
to aid comparability between the accounting periods.
6. Property, plant and equipment:
Freehold Right Passenger
land of use Plant carrying
and assets and vehicles Total
buildings under machinery
IFRS 16
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 December 2020 10,907 4,814 6,267 71,392 93,380
Additions - - - 11,905 11,905
Disposals - (1,751) (239) (15,115) (17,105)
At 30 November 2021 10,907 3,063 6,028 68,182 88,180
Additions - - 56 395 451
Acquisitions - - 111 1,243 1,354
Disposals - (1,136) (9) (1,041) (2,186)
At 31 May 2022 10,907 1,927 6,186 68,779 87,799
Depreciation:
At 1 December 2020 344 2,859 2,193 22,592 27,988
Charge for the year 512 481 2,210 11,703 14,906
Disposals - (1,722) (103) (13,980) (15,805)
At 30 November 2021 856 1,618 4,300 20,315 27,089
Charge for the period 56 202 424 3,553 4,235
Disposals - (542) (1) (1,020) (1,563)
At 31 May 2021 912 1,278 4,723 22,848 29,761
Net book value:
At 31 May 2022 9,995 649 1,463 45,931 58,038
At 30 November 2021 10,051 1,445 1,728 47,867 61,091
The Group signed an unconditional contract to sell a surplus
leasehold property before the period end, but the transaction was
completed just after the period end. Accordingly, in these
unaudited condensed consolidated interim financial statements, the
transaction has been treated as an adjusting event.
7. Loans and borrowings:
Secured bank loans are mortgage-type loans secured by reference
to the Group's freehold property.
Unaudited Unaudited Audited
At 31 May At 31 May At 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Current:
Overdrafts (unsecured) 336 2,798 3,603
Bank loans (secured) 415 411 412
Bank loans (unsecured) 1,276 14,675 7,600
2,027 17,884 11,615
Non- current:
Bank loans (secured) 5,233 5,651 5,445
Total loans and
borrowings 7,260 23,535 17,060
8. Lease liabilities:
Current: Unaudited Unaudited Audited
At 31 May At 31 May At 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Obligations under hire
purchase agreements (see
note 9) 6,779 7,280 6,897
Other lease liabilities
(see note 10) 408 417 422
Total current liabilities 7,187 7,697 7,319
=========== =========== ================
Non - current: Unaudited Unaudited Audited
At 31 At 31 May At 30 November
May 2022 2021 2021
GBP'000 GBP'000 GBP'000
Obligations under hire
purchase agreements (see
note 9) 29,540 31,866 33,025
Other lease liabilities
(see note 10) 359 1,668 1,460
Total non - current liabilities 29,899 33,534 34,485
========== =========== ================
9. Hire purchase agreements:
The Group's obligations under hire purchase agreements are
secured by the lessors' rights over the leased assets.
Unaudited Unaudited Audited
At 31 May At 31 May At 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Present value:
Not later than one
year 6,779 7,280 6,897
More than one but less
than two years 8,159 6,185 8,061
More than two but less
than five years 14,854 17,726 16,436
Later than five years 6,527 7,955 8,528
----------- ----------- ----------------
36,319 39,146 39,922
10. Other lease liabilities:
Future lease payments for leases treated as finance leases under
IFRS 16 but which take the legal form of rental agreements, without
the legal right of ultimate ownership of the asset leased, are as
follows:
Unaudited Unaudited Audited
At 31 May At 31 May At 30 November
2022 2021 2021
GBP'000 GBP'000 GBP'000
Present value:
Not later than one
year 408 417 422
More than one but less
than two years 327 423 432
More than two but less
than five years 32 408 201
Later than five years - 837 827
----------- ----------- ----------------
767 2,085 1,882
11. Dividends:
The Company paid a special interim dividend of 1.0p per share in
April 2022 in relation to the six months ended
31 May 2022. All dividends are payable in cash only.
12. Additional information:
The unaudited Consolidated Interim Report was approved by the
Board of Directors on 27 July 2022. The consolidated interim
financial information for the six months ended 31 May 2022 and for
the six months ended 31 May 2021 is unaudited. The financial
information in this interim announcement does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The statutory accounts of Rotala Plc for the
year ended 30 November 2021 have been reported on by the Company's
auditors and have been delivered to the Registrar of Companies. The
report of the auditors on these accounts was unqualified, did not
contain an emphasis of matter and did not include a statement under
section 498 of the Companies Act 2006. Copies of the financial
statements are available from the registered office of the Company
at Rotala Group Headquarters, Cross Quays Business Park, Hallbridge
Way, Tividale, Oldbury, West Midlands, B69 3HW and the Company's
website www.rotalaplc.com .
13. Copies of this statement are available from the registered
office of the Company at Rotala Group Headquarters, Cross Quays
Business Park, Hallbridge Way, Tividale, Oldbury, West Midlands,
B69 3HW and the Company's website www.rotalaplc.com .
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END
IR EDLFLLDLZBBB
(END) Dow Jones Newswires
July 28, 2022 02:00 ET (06:00 GMT)
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