Sale of Freehold Depot and Fuel Hedging update

RNS Number : 9750I

Rotala PLC

30 November 2018

 

RNS Reach

30 November 2018

Rotala Plc

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

Sale of Freehold Depot and Fuel Hedging update

Rotala announces the sale of its freehold depot at Avonmouth, Bristol to Umberdata Avonmouth Limited, a property investment company, for a cash consideration of £2.09 million. The consideration, after transaction costs, approximates to the net book value of the assets.

Of the net proceeds, approximately £1 million will be used to improve the Group's balance sheet through a reduction in its bank borrowings and the remaining cash will be available for future re-investment or potential acquisitions. 

The Company also provides the following update on its diesel fuel hedging requirements .

Currently the annual fuel requirement of the Group is approximately 11.5 million litres. Given the recent volatility of fuel prices, which seems likely to continue, the board has been monitoring diesel price trends closely.  

Taking advantage of the recent weakness of crude oil prices, the board has taken out a number of fuel hedge contracts, using diesel derivatives, for the year ending 30 November 2019. These hedge contracts are expected to cover approximately 52 per cent. of the Group's fuel requirements for that year, at an average price of 101p 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 and creating business certainty.

Rotala Plc	0121 322 2222
John Gunn, Chairman Simon Dunn, Chief Executive Kim Taylor, Group Finance Director
Nominated Adviser & Joint Broker: Cenkos Securities plc	020 7397 8900
Stephen Keys/ Callum Davidson (Corporate Finance) Michael Johnson/Julian Morse (Corporate Broking)
Joint Broker: Dowgate Capital Stockbrokers Ltd	0203 903 7715
David Poutney/James Serjeant (Corporate Broking)

 

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