31 Mar 2023 12:29
RNS
31 March 2023
Rotala Plc
("Rotala", the "Company" or the "Group")
Acquisition of a depot in Eccles, Greater Manchester
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 in the Eccles area of Greater Manchester of a freehold depot from WAG Holdings Limited for a consideration of £1.9 million payable in cash (the "New Eccles Depot").
In its circular to shareholders dated 26 January 2023, the Company set out its capital expenditure plan for freehold property in each of its 2023 and 2024 financial years. In that plan, the Company stated that it expected to build a new freehold depot in the Eccles area to compensate for the proposed disposal of its Bolton depot as part of the franchise process in Greater Manchester. However, subsequently, the Company has instead been able to acquire the New Eccles Depot which is directly opposite its current depot in Eccles.
The New Eccles Depot, taken together with the Company's existing depot in Eccles and the planned short-term lease of another small depot in central Bolton, will provide ample space for the Company's operational needs in the Greater Manchester area for the foreseeable future. It will no longer be necessary therefore for the Company to build a new depot in the Eccles area.
The consideration has been wholly financed from the Company's existing Revolving Commercial Facility with its bankers, HSBC Bank Plc.
Rotala Plc | 0121 322 2222 |
John Gunn, ChairmanSimon Dunn, Chief ExecutiveKim Taylor, Group Finance Director | |
Shore Capital |
020 7408 4090 |
Tom Griffiths / James Thomas / Lucy Bowden (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.