ROL.L Regulatory News (ROL)

26 Sep 2005 07:01

Rotala PLC26 September 2005 26 September 2005 Rotala plc The board of Rotala plc ("Rotala" or the "Company") announces an update onmatters relating to the recent acquisition by Rotala of the Flights Group and anupdate on recent trading and operational developments. Flights Group and Central Parking System of UK Limited ("CPS") The Company's admission document dated 9 August 2005 described the businessesacquired as part of the Flights Group. This document also identified that thedisentanglement of the Flights Companies from CPS might result in certainlogistical and other issues which could absorb management time and involve costsand expenses being incurred by the Company. In an announcement made very recently by the parent company of CPS, CentralParking Corporation ("CPC"), in conjunction with a tender offer, CPC stated thatit had become aware of issues concerning certain related party transactions andaccounts receivables in its UK operations and that there might be a resultantnegative financial impact to CPC relating to these matters, which currently itcould not quantify. Furthermore, the board of Rotala has been informed by CPC that theseinvestigations partly involve the seller of the Flights Group, Stuart Lawrenson. Mr Lawrenson was Senior Vice President, Europe, of CPS until August 2005 andbecame a non-executive director of Rotala upon completion of the acquisition ofthe Flights Group on 30 August 2005. To the extent (if at all) that Rotala suffers any material prejudice as a resultof matters arising out of any such investigation, it has notified Mr Lawrensonthat it has a number of potential warranty and indemnity claims under theoriginal acquisition agreements entered into with him, among others. It shouldalso be noted that the Company has the right to offset any such claims againstthe loan note consideration and any deferred share consideration which mightotherwise have become payable. Update on trading and operations Further to the statements relating to the prospects and trends of the FlightsGroup set out in the Company's Admission Document dated 9th August 2005, we arepleased to confirm that turnover has continued to be increased both by organicgrowth generated by existing contracts and by the addition of recent newcontract wins. The Board is mindful of the need to continue to improve vehicleproductivity and to enhance the utilisation of the solid operational base thathas been created. Naturally, the increase in fuel prices causes a problem incommon with other operators. The management is endeavouring to increase the useof fuel price protection clauses across the Company's business base. The Company also announces that Kim Taylor, the Finance Director, will take overthe post of Chief Executive Officer for the time being and that a search hasbeen commenced for a group chief operating officer. It is intended that a GroupFinancial Controller will be appointed shortly. Stuart Lawrenson will remain asa non-executive director of the Company for the time being. Further announcements relating to the above matters will be made in due course. For further information please contact: Kim Taylor, Rotala 0207 236 6236 Nick Fox, M:Communications. 020 7153 1540 This information is provided by RNS The company news service from the London Stock Exchange