Rotala PLC Acquisition (8147U)
03 Agosto 2022 - 02:37PM
UK Regulatory
TIDMROL
RNS Number : 8147U
Rotala PLC
03 August 2022
RNS
3 August 2022
Rotala Plc
("Rotala", the "Company" or the "Group")
Acquisition of Midland Classic Limited and extension of services
in the East Midlands
Rotala (AIM: ROL.L), an operator of bus routes in the UK for
businesses, local authorities and the general public, is pleased to
announce the acquisition of the entire issued share capital of
Midland Classic Limited ("Midland"), the principal bus operator in
Burton-upon-Trent (the "Acquisition"). Midland has been acquired
for a total cash consideration of GBP2 million. In addition, on
completion, Rotala has paid approximately GBP577,000 in cash to one
of Midland's shareholders to repay an existing loan of the same
sum.
In the year ended 31 July 2021, the most recent financial year
for which figures are available, Midland had unaudited revenues of
approximately GBP5.6 million (2020: GBP5.2 million) and a profit
before tax of GBP2,000 (2020: GBP621,000). At 31 July 2021, Midland
had unaudited net assets of approximately GBP1.3 million (31 July
2020: GBP1.3 million), including a freehold property with a net
book value of GBP956,000 and a passenger carrying vehicle fleet
with a net book value of GBP2.1 million. Hire purchase debt of
approximately GBP900,000 was being used to finance this vehicle
fleet, which Rotala has assumed on completion of the Acquisition.
On this basis, the Acquisition is expected to generate
approximately GBP750,000 of positive goodwill, including stamp duty
and transaction costs.
Midland operates 60 vehicles from its freehold depot in
Burton-upon-Trent and employs approximately 110 staff. It is the
principal bus operator in Burton-upon-Trent, from where it provides
bus services to other nearby towns such as Uttoxeter,
Ashby-de-la-Zouch and Lichfield. The Acquisition represents an
extension of the Group's business to a new territory in the East
Midlands from which further growth will be targeted. Operationally,
Midland (which will immediately be renamed Diamond Bus (East
Midlands) Limited) will be part of Rotala's Midlands division and
will be controlled from the Company's headquarters at Tividale,
Oldbury.
The Board does not expect that the Acquisition will have a
material impact on earnings in the Company's current financial year
ending 30 November 2022. The consideration was funded using the
Group's existing debt facilities. As with the other acquisitions
which the Company has made recently, Midland will adopt the Group's
centralised IT systems covering such matters as accounting,
purchasing, stock control and payroll. These integration steps are
expected to have been fully implemented by 30 November 2022. The
Directors believe that, following these steps and the continuing
slow, but steady recovery in bus passenger numbers throughout
England, the Acquisition will have a beneficial effect on the
Company's future earnings.
Simon Dunn, Chief Executive of Rotala, commented: -
"Midland Classic is a sizeable well-established business in an
attractive bus territory. It represents the entry by Rotala into
the East Midlands which is a new market for the Group. However, at
the same time, geographically it is adjacent to our existing
operations in the West Midlands and so easily managed from there.
The business also has its own freehold depot from which we will
look to further expand Rotala's services as the recovery in
passenger numbers post-COVID continues."
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)
About the business
Rotala provides a range of transport solutions, ranging from
local bus services under contract to local authorities, through to
commercial bus routes. Rotala has operations at Heathrow Airport,
in the West Midlands and in the North West. Operating companies are
Diamond Bus Ltd, Diamond Bus (North West) Ltd, Diamond Bus (East
Midlands) Ltd, Hallmark Connections Ltd and Preston Bus Ltd.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQUOOURUVUWRAR
(END) Dow Jones Newswires
August 03, 2022 08:37 ET (12:37 GMT)
Grafico Azioni Rotala (LSE:ROL)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Rotala (LSE:ROL)
Storico
Da Mar 2023 a Mar 2024