24 Mar 2017 07:00
24 March 2017
RNS Reach
Rotala plc
("Rotala" or "the Company" or "the Group")
Transfer of business and Novation of certain contracts
Rotala is pleased to announce that, through its subsidiary operating in the West Midlands, Diamond Bus Limited ("Diamond"), it has agreed a deal with Arriva Midlands North Limited ("Arriva"), a subsidiary of Arriva plc, to take on the majority of the Arriva Wednesfield operation.
The deal agreed will see Diamond accept, with effect from 23 April 2017, nine vehicles from Arriva Wednesfield together with those Transport for West Midlands ("TfWM") contracts which are presently operated by Arriva Wednesfield with the vehicles being transferred. TfWM has consented to the novation of the underlying subsidised bus contracts. The contracts all expire on 21 October 2017 and the estimated revenue for the remaining six months of the contracts until expiry is £600,000.
Arriva will retain operation of the 10 A/B and the 335 services, which will transfer to other Arriva depots in the Midlands, and the staff to operate them. Diamond will offer employment to every other member of Arriva Wednesfield staff.
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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