TIDMROL

Rotala PLC

29 April 2022

RNS Reach

29 April 2022

Rotala Plc

("Rotala" or the "Company" or the "Group")

Acquisition of established bus operator in Warwickshire and the West Midlands

Rotala plc (AIM:ROL) is pleased to announce the acquisition from Johnsons (Henley) Limited of its entire bus business and 20-strong fleet, for a cash consideration of GBP936,000 payable on completion (the "Acquisition"). The business being acquired is a well-established operator of commercial and contracted bus services in Warwickshire and the southern West Midlands. The Acquisition is expected to be earnings enhancing from completion.

Rotala estimates that the assets being acquired have annual revenues of approximately GBP3.5 million and that the vehicle fleet has a fair value which approximates to the cash consideration being paid. Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis, the Acquisition is not expected to generate any goodwill.

The Directors believe that, following completion, the Acquisition will generate EBITDA of approximately GBP200,000 per annum for the Group. No additional overheads are expected to be required as a result of the Acquisition.

Following completion, the business, trading at present under the "Excelbus" brand, will be subsumed into the Company's Diamond Bus business operating out of its existing Redditch depot and the buses will be rebranded into Diamond Bus livery. Approximately 60 employees are expected to transfer to Diamond Bus with the business. T he Acquisition will extend the Group's network of bus services in Warwickshire and the West Midlands and make more efficient use of the capacity of the Company's Redditch depot.

Completion of the Acquisition is expected to occur on 29 May 2022, after giving due time for the necessary consultation with the transferring employees under the Transfer of Undertakings (Protection of Employment) Regulations 2006.

Simon Dunn, Chief Executive of Rotala, said : "In our recently published Annual Report, we highlighted our belief that the Group was very well placed to take advantage of the acquisition opportunities that were likely to arise as commercial reality returned to the bus industry after COVID 19. The Acquisition is an example of such a transaction and we continue to look for others.

The Acquisition also fits in with a key part of the Group's strategy in seeking to consolidate smaller businesses in our existing areas of operation so that we make better use of our current depot capacity and so spread overheads over a larger business, with a corresponding increase in business efficiency."

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 / Michael McGloin (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, Hallmark Connections Ltd and Preston Bus Ltd.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. 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.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word "Reach" in the source column of the News Explorer pages of London Stock Exchange's website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

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

NRAUWOVRUAUSUAR

(END) Dow Jones Newswires

April 29, 2022 02:02 ET (06:02 GMT)

Rotala (LSE:ROL)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Rotala.
Rotala (LSE:ROL)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Rotala.