12 Jul 2016 17:06
12 July 2016
Rotala plc
("Rotala" or "the Company")
Acquisition in Lancashire
Rotala is pleased to announce the acquisition from Elite Minibus and Coach Services Limited ("Elite") of its entire business, brand and 6-strong vehicle fleet for a cash consideration of £200,000. Rotala estimates that the Elite business has annual revenues of approximately £500,000 and that its vehicle fleet has a fair value of approximately £150,000. Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis the Acquisition is expected to generate about £50,000 of positive goodwill on consolidation.
Elite is a well-established operator of contracted services for local authorities and schools in the Blackpool area. It also has a successful private hire arm. This business, with its small number of existing staff, will be integrated into the outstation which Rotala already operates in Blackpool through its subsidiary company, Preston Bus Limited ("Preston Bus"). This acquisition will broaden the range of services which Preston Bus is able to offer in this area of Lancashire and add to its geographical reach. The Acquisition is expected to be earnings enhancing from completion.
For further information please contact:
Rotala Plc | 0121 322 2222 |
John Gunn, Chairman | |
Simon Dunn, Chief Executive Officer | |
Kim Taylor, Group Finance Director | |
Nominated Adviser & Broker: Cenkos Securities plc |
020 7397 8900 |
Stephen Keys/Callum Davidson (Corporate Finance) Michael Johnson/Julian Morse (Corporate Broking)
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This announcement contains price sensitive information.