ROL.L Regulatory News (ROL)

20 Apr 2009 07:00



Press Release

20 April 2009

Rotala plc

("Rotala" or 'the Company')

 New Contracts and Other Service Enhancements

The Board is pleased to announce that the group has recently been awarded a number of new contracts and additions to existing contracts by various customers. The effect of these new contracts, in aggregate, is expected to be an increase in annual revenues of Rotala of circa £4.7 million.  

Bristol and Bath areas

The Company, through its wholly owned subsidiary Flights Hallmark Limited ("Flights"), has been awarded a number of contracts. Bristol City Council has awarded Flights an emergency contract to operate night buses on routes N1 to N8 in the city until September 2009. This contract is expected produce additional annual revenues of £106,000 for Rotala.

South Gloucestershire County Council has also provided an additional subsidy in order to support the operation of a new service (number 532/3) in their area, and to extend the operation of the existing 625 service. The revenues to be derived from these services, on a two year contract, are expected to be circa £390,000 per annum.

At the request of the University of the West of England the number of vehicles provided by Flights under an existing contract has been increased and, together with enhancements to another contract with an existing private bus network customer in the region, these changes will generate revenues for the company of some £268,000 in a full year.

Lastly Flights for some time has had a desire to develop the geographical spread of its West of England operations. In line with this it has been successful in increasing its operator's licence in Bristol from 80 to 100 vehicles and it is intended to commence operations in Bath from 10 May 2009. Flights has been awarded the contract to operate the number 20 service for Bath and North East Somerset Council. This service, on a 17-month contract, requires four buses, with an annual revenue of £317,000. On the same date Flights is also launching in Bath a commercial service, number 18, which is expected to generate further revenues of £370,000 per annum.

Birmingham area

Through Flights it is particularly pleasing to be able to announce that Rotala has been awarded the prestigious passenger transport contract for the meeting of Rotary International in Birmingham at the end of June 2009. This is the 100th Rotary International convention. Flights will provide daily shuttle services between the 80 or so hotels which are being used by Rotary International delegates and the National Exhibition Centre, where the convention is being held. Flights will also transport delegates to other events on the delegate programme, including Warwick Castle, Birmingham City Centre and the National Indoor Arena in Birmingham. This contract has a revenue value to Rotala of just over £1.0 million. 

Also in Birmingham, through its wholly owned subsidiary The Diamond Bus Company Limited, Rotala has been awarded 27 new contracts by Centro, the government organisation responsible for transport policy and planning in the West Midlands region. These contracts are mostly of three years' duration and will operate out of Rotala's depot in Oldbury, West Midlands. In addition Worcestershire County Council has awarded the Diamond Bus Company 11 new contracts to be operated out of the Redditch depot. These contracts are for the period from April 2009 to November 2012. In aggregate, these new contracts awarded by Centro and Worcestershire County Council are expected to result in additional revenues for a full year of circa £2.2 million. 

John Gunn, Chairman of Rotala, commented "Our management is to be congratulated once again on achieving these further contract successes. The award of the Rotary International contract against stiff competition is a testament to our management strengths and to the consistent high quality of service provided by our staff to our customers. The contracts awarded to Diamond Bus by Centro and Worcestershire County Council will further enhance the growth and success of our commercial bus operations." 

The results of the Company for the year ended 30 November 2008 will be announced in the latter part of May 2009 and will be in line with market expectations. Trading in the initial months of the current accounting period is satisfactory and is proceeding in line with budget.

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