Rotala profits continue to increase

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Rotala plc has announced its audited financial results for the year ended November 30, 2015.

The company’s profit before tax was up 9% to £2.46m (2014: £2.26m). Adjusted basic Earnings Per Share increase by 5% to 5.19p from 4.95p, while gross profit margin stood at 18.7% (2014: 17.7%) on turnover of £50.9m (2014: £51.7m).

The operating margin of the company was 7.1% (2014: 6.9%) before mark to market provision and other exceptional items.

John Gunn, Non-Executive Chairman of Rotala, commented: “These results are an encouraging reflection of our focus on excellence of management, operating efficiency and quality of service delivery.

“Commercial services revenues have become increasingly significant to the Group in recent years. Revenues in this stream of business rose by 8% in the year to £33.2m (2014: £30.6 million). Commercial Services now form 65% of Group turnover (2014: 59%).

“A considerable proportion of the growth in these revenues came from the acquisition of Green Triangle Buses Limited at the end of February 2015. The Preston area suffered from a fall-off in concessionary passenger revenues, but in both the West Midlands and the South West there were notable advances.”

Commenting on the upcoming buses bill, John added: “Although we can know little or nothing of the detail to be included in the forthcoming Buses Bill, we can be sure that this new initiative by the government will serve to inject further instability into the bus industry.

“The industry entered into a prolonged period of painful re-adjustment in 2010. It has yet to emerge from this phase and the Buses Bill will certainly not help to bring these difficulties to an end. But we must recognise that the natural companion of change is opportunity.

“In order to meet the challenge of the Buses Bill it is clear that the Group needs a balanced and judicious mix of businesses.”

Rotala has continued its policy of hedging fuel. For 2016 it is hedged at an average price of about 101p a litre, 95p a litre for 2017 and 91p a litre for 2018.