Acquisition

RNS Number : 2502W

Rotala PLC

24 January 2013

 



24 January 2013

Rotala plc

("Rotala" or "the Company")

Acquisition in Worcestershire

Rotala is pleased to announce the acquisition from First Group Plc ("First") of certain of their bus operations in Worcestershire. Rotala will acquire, for a cash consideration of £1.5 million, two freehold depots, one in Kidderminster and the other in Redditch, 36 vehicles, and various items of plant and equipment, and will continue to run the services that First currently operate from these depots (the "Acquisition").

The Kidderminster depot comprises a site of some two acres and was purpose built in 2001. It can accommodate up to 60 vehicles. The Redditch depot, built about 35 years ago, has a slightly smaller useable area and can accommodate about 50 vehicles. In the year ended 30 June 2012, these depots reported combined revenues of approximately £5.2 million and an operating loss of £0.27 million. They employ about 120 staff.

The Acquisition will enable the Company to expand and consolidate its position in those areas of Worcestershire which are contiguous to its main areas of operation in the Birmingham conurbation. By integrating these acquired depots into its current depot network, the Company will be able to take advantage of operating efficiencies generated by the Acquisition.

The Acquisition is not expected to have a material impact on earnings in the current financial year. Once the integration of operations and overheads has been fully implemented, the Acquisition is expected to have a beneficial effect on earnings in the following years. On the basis of the information available at present the Acquisition is expected to generate a small amount of negative goodwill.

For further information please contact:

Rotala Plc
John Gunn, Chairman	020 7602 7500
Simon Dunn, Chief Executive	07825 808 525
Kim Taylor, Group Finance Director	07825 808 529
Numis Securities Limited	020 7260 1000
David Poutney (Corporate Broker); Stuart Skinner/Richard Thomas (Nominated Adviser)

 

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