ROL.L Regulatory News (ROL)

21 Jun 2007 07:52

Rotala PLC21 June 2007 Rotala plc ("Rotala" or "the Group") Acquisition of Ludlows of Halesowen Limited Further to the announcement on 18 June 2007 of an exclusivity arrangement,Rotala is pleased to announce that it has exchanged contracts to acquire theentire issued share capital of Ludlows of Halesowen Limited ("Ludlows"). The Directors expect the acquisition of Ludlows to be earnings enhancingimmediately. Ludlows is a bus business that operates 21 buses in the Halesowen district ofBirmingham approximately fourteen miles from the main depot of Flights HallmarkLimited, a subsidiary of Rotala ("Flights") in the Aston area of Birmingham. Thecurrent work undertaken by Ludlows is almost exclusively commercial stagecarriage. The Directors believe that the acquisition of Ludlows will improve the abilityof the enlarged Group to tender for and operate subsidised routes inWorcestershire and Warwickshire by enhancing the efficiency of the routes thatthe Group currently carries out in these counties. Flights intends to transfer vehicles to the Halesowen depot of Ludlows. Thiswill free up space at the Long Acre depot and enable further expansion work tobe carried out. The Directors anticipate that cost savings will be achieved froma reduction in Ludlows' administrative and accounting overheads. The consideration for the acquisition of Ludlows is £850,000 payable in cash.Ludlows reported sales of £1.5 million in its unaudited accounts for thefinancial year ended 31 March 2006, with loss before tax of £24,000 and netassets of £308,000 as at 31 March 2006. The acquisition of Ludlows is being funded in part through the proceeds of theplacing announced on 18 June 2007, and is therefore dependent, inter alia, uponthe placing becoming unconditional. The acquisition is also conditional uponLudlows having entered into a property lease in respect of a property currentlyoccupied by Ludlows on such terms as Rotala in its absolute discretion approveson or before 15 July 2007 (or such later date as the Company and the Sellersagree, being not later than 5.00pm on 1 August 2007), and Rotala being satisfiedin all respects with the results of its enquires into the financial and otheraffairs of Ludlows on or before 15 September 2007. Enquiries: Contacts: John Gunn, Chairman 020 7236 6236 Kim Taylor, CEO 07918 883796 Romil Patel / Rhod Cruwys, Blue Oar Securities 020 7448 4400 This information is provided by RNS The company news service from the London Stock Exchange