7 Dec 2009 07:00
Rotala plc
("Rotala" or "the Company" "the Group")
Trading Update
Rotala is pleased to announce the following pre-close trading update for the twelve months to 30 November 2009.
Throughout the period the Company has continued to win new contracts and expand its operations, as set out in previous announcements. During the year to 30 November 2009 Rotala commenced new bus operations in Bath, Birmingham and Worcester. Additionally, the Company's Heathrow operations secured a renewal to February 2015 of its contract to provide a private bus service for British Airways personnel. Other contract renewals or extensions included the contract with Qantas for a further three years and a transportation contract for Cathay Pacific's employees.
Rotala is pleased to report that it expects full year results to be in line with market expectations and accordingly, the Company anticipates that it will pay a dividend for the year ending 30 November 2009.
Looking forward to the new accounting year, the Directors believe that significant opportunities exist both to extend its contractual relationships with current customers and to attract new customers to the Group. The Board also considers that the Company's record for customer retention is excellent and it expects this trend to continue in the year ahead.
The Board is also pleased to announce that it has secured a grant of £2.9 million under the Department of Transport's £30 million Green Bus Fund initiative. The aim of the Fund is to help bus operators acquire low carbon buses. Currently such vehicles have a higher capital cost than conventional diesel-powered buses. The grant will enable the Company to acquire 23 hybrid diesel/electric vehicles to be manufactured by Alexander Dennis Limited. These buses will be deployed in the Bristol and Bath region and the Company will be the operator of almost all the hybrid vehicles to be brought into service under this initiative in this area of the country. Low carbon buses use at least 30 per cent. less fuel and emit almost a third less carbon than an equivalent conventional bus. Therefore they also make a significant contribution to the improvement of air quality. The Board is delighted to be able to bring to the people of Bath and Bristol vehicles which, in congested cities like these, will reduce the impact of road transport on climate change. The vehicles will also meet the most stringent emission standards to improve air quality.
In November 2009 the Rotala raised £2.15 million through a placing which will enable the Group to support the new business outlined above as well as to underpin the further organic growth which is expected in its chosen geographical regions, particularly in the South-West. In this placing Rotala was pleased to attract the support of two new blue-chip UK institutional investors.
The preliminary results for the year ended 30 November 2009 are expected to be released in March 2010.
For further information please contact:
| Rotala Plc | |
| John Gunn, Chairman | 020 7621 5770 |
| Simon Dunn Chief Executive | 07825 808 525 |
| Kim Taylor, Group Finance Director | 07825 808 529 |
| | |
| Charles Stanley Securities - Nominated Advisor | 020 7149 6000 |
| Mark Taylor / Ben Johnston | |