Rotala making modest progress

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Rotala has announced a trading update for the year ended November 30, 2014.

The operator said that pre-tax profits, on a slightly reduced level of turnover and before exceptional items, were modestly ahead of those of 2013 and were broadly in line with management expectations.

Operating cash flow enabled the group to improve the balance between current assets and current liabilities by £2.5m in the year compared to the position at the end of 2013. Net debt, which at November 30, 2013 stood at £20.0m, had fallen to £18.4m by November 30, 2014.

John Gunn, Chairman, said: “Current market prices for fuel offer an opportunity to fix a key operating cost at a much lower level for a number of years ahead. This will underpin the board’s commitment to a progressive dividend policy which reflects improvements to underlying earnings and cash flows.

“It is pleasing to note that our determination to deliver value for shareholders has been reflected in a stronger share price over the past two years and this strength should be underpinned by the certainty of lower fuel prices over the next three years as the result of our hedging activities.“