ROL.L Regulatory News (ROL)

10 Dec 2007 07:00

Rotala PLC10 December 2007 Rotala plc ("Rotala" or the "Company') Year-end update The Board is pleased to provide an update of the financial performance of theCompany and its main operating subsidiaries (together the "Group") for the yearended 30 November 2007. Trading update for the financial year to 30 November 2007: The board expects to announce the Company's results for the financial year ended30 November 2007 at the end of February 2008. The board is pleased to reportthat the results of the Company for the financial year to 30 November 2007 willbe in line with market expectations. The trading performance improved rapidlyfrom the middle of the year onwards and has moved into month by monthprofitability at the end of the accounting period. Trading performance: The Company and its subsidiaries (together the "Group") have won a substantialnumber of additional contracts over the past twelve months, both from existingand new clients, and in both the public and private sectors. Contract winsannounced to the market amount to additional revenue of approximately£5.7million. The beneficial impact arising from these new contracts has beenfelt only in part in the financial year ended 30 November 2007, with furtherbenefits to flow in the financial year ending 30 November 2008. Furthermore the board is pleased to announce that in recent weeks the Companyhas won £1,100,000 in new contracts together with an extra £960,000 of shortterm work for an existing major customer which will have its effect in the firsthalf of 2008. Two other large customers have also shown their satisfaction withthe Group's services by recently renewing current contracts. Acquisitions: Rotala has successfully integrated the purchases of Zak's Bus & Coach ServicesLimited, North Birmingham Busways Limited and the business of Birmingham MotorTraction into the existing operations of the Group at the main Birmingham depot.The step-by-step acquisition of the bus operations of the Bristol-based SouthGloucestershire Bus and Coach Company Limited is proceeding according to planand should be completed in the first quarter of 2008. Due diligence iscontinuing on Ludlows of Halesowen Limited and a decision as to whether toproceed with the acquisition will be taken in the first quarter of 2008. Furtheracquisition targets are under review. These targets are situated in areas whichare contiguous to our existing locations, in accordance with the statedobjectives of achieving operating efficiencies and economies of scale by placingoperational hubs at suitable distances from each other. Market conditions: Transport policy at national and local government levels remain focused onaddressing the problems created by increasing congestion and pollution, as wellas fulfillment of social needs. Both central government and local authoritiesare consequently taking steps to encourage the increased usage of buses ratherthan cars. The new Transport Bill currently before Parliament gives powers tolocal government which will promote the use of the bus in congested urbanenvironments. The board believes that this augurs well for Rotala's operationsin both Birmingham and Bristol. Transport policy initiatives at national levelalso look likely to involve further public investment to the benefit of thepublic transport industry as a whole. Forthcoming year: The 2007 financial year has been a year of substantial change for the Company.As a result of a number of complementary acquisitions and a strong pipeline ofcontract wins, the board expects the trends set out above to continue into thecurrent financial year. The board remains confident that the strategy which ithas devised has created a sound platform for good growth in the years to come,both organically, through new customer and contract wins, and throughvalue-enhancing acquisitions. Enquiries: Contacts:John Gunn, Chairman 020 7621 5770Kim Taylor, CEO 020 7621 5770Romil Patel / Rhod Cruwys, Blue Oar Securities Plc 020 7448 4400 This information is provided by RNS The company news service from the London Stock Exchange